International Data Corporation observes a striking increase in overall consumer spending on PCs in the past few months starting June and forthcoming festive season is only expected to boost the growth further.
According to International Data Corporation (IDC) the India PC market stood at 2.55 million units in Q2 2014 with top 5 states contributing 62.3% of the overall PC market.
This growth is primarily driven by manifesto driven state government deals for students such as the one noticed in Tamil Nadu (ELCOT-III) in CY 2014. In addition, end user buying sentiments have improved, post the elections in Q2 2014.
South region took the first spot in the India PC market, with an overall share of 41.8% in Q12014. The region also recorded a sequential growth of 66.4% in terms of unit shipment, while the year-on-year increase was also noted to be 2.3%. The top 3 vendors contributing to the region’s growth are HP(37.6%), Dell(13.9%) and Lenovo(13.7%).
Karnataka and Tamil Nadu remain the two dominant states in the Southern region with a combined share of 53.1% in the consumer PC market.
In North India, the PC market witnessed a marginal sequential (Quarter-on-Quarter) drop of 0.8% in terms of unit shipment and a year-on- year drop of 61.6% in Q2 2014. Top 3 vendors in the region are HP(27.2%), Dell(22.8%) and Lenovo(13.2%).
Delhi continues to record the highest shipments in the North region as it boasts of a market share of 34.6% in Consumer PC and 46.6% in Commercial PC market. Along with UP and Rajasthan, these three states contribute more than two-thirds of consumer PC business in the region.
The West region witnessed a sequential growth of 12.8% in terms of unit shipments and a year-on-year drop of 3.5% in Q2 2014. A clear mandate in elections followed by union budget boosted end user sentiments and their discretionary spending which resulted in a growing demand in Q2 2014. The top 3 vendors contributing to regions expansion are Dell (22.9%), HP (20.3%) and Lenovo (15.8%).
Maharashtra continues to remain the single largest state for run-rate PC business in India. It holds a dominant position with 64.9% market share in Q2 2014 in consumer PC business and a share of 72.5% in the commercial PC business in the West region.
According to Manish Yadav, Market Analyst with IDC “Maharashtra, specially Mumbai and Pune houses some of the large corporates in both private and public segments which drives the enterprise spending in this region. Verticals like BFSI, retail, IT/ITeS are the largest contributors of the region in terms of enterprise spending on hardware and Q2 2014 was no exception.”
The East region remained flat quarter on quarter in terms of unit shipment, whereas registering a year-on-year drop of 14.6% in Q2 2014. The top 3 vendors in the regions were HP (23.2%), Dell (22.2%) and Lenovo (11.6%).
West Bengal is the largest state in the Eastern region with a share of 43.4% in the consumer PC market and 46.1% in the commercial PC market. “IDC observes improved retail demand for PCs in states like Bihar and Jharkand. Growth in this region will continue to be driven by tier II and III cities/ towns.” Yadav added.
