India PC market growth declines for the first time in two years: Report

India shipped 3.9 million PCs, including desktops, notebooks, and workstations, during the quarter. The consumer segment saw 2.1 million units shipment, with PC shipments during the quarter falling 10.9% YoY, despite seeing some growth in September due to online sales.

IDC attributes the overall decline to the weakening of demand across sectors, except for government orders which grew 91.5% YoY. The overall commercial segment declined 12.5% YoY.

Notebooks which account for 70% of the total PC shipments, declined by 19.5% YoY. According to IDC, demand for notebooks has dwindled across segments, forcing vendors to prioritize clearing inventory.

“Weakened currency is resulting in rising device costs and pricing pressure for vendors,” said Bharath Shenoy, senior market analyst, IDC India.

Shenoy added that vendors delayed price hikes due to online sales in the September quarter. They might increase prices in the December quarter, which might “dampen sentiment” further.

Demand for premium notebooks (above $1,000) in the commercial segment fell by 28.5%, as most companies are looking to cut spending due to economic uncertainty and fear of recession.

However, not all segments were affected by the downturn. IDC report shows that demand for desktops and workstations remained strong during the quarter, resulting in YoY growth of 23.4% and 17.6% respectively.

Demand for premium notebooks such as Apple MacBooks and Asus gaming laptops in the consumer segment also grew by 9.8% YoY.

IDC analysts predicted that the demand is likely to remain slow.

“We expect a slowdown in PC procurement from the IT/ITES sector, which is typically one of the biggest buyers. Similarly, we are witnessing some sluggishness in SME procurement as they are challenged by inflation and a credit crunch,” said Navkendar Singh, associate vice president, of devices research, IDC India, South Asia & ANZ.

Singh pointed out that the government and education sectors are seeing some orders, which is expected to drive demand in the commercial segments in the next two quarters.