This year, the commercial shipments declined by 4%, recording a total volume of 4.76 million units, as the year did not see any large-scale special projects
The overall market saw good momentum in Q1-2018 due to stable consumer spending and the execution of special projects. However, the market witnessed challenges in the subsequent quarters in both consumer and commercial segment owing to the aggressive stocking of inventory, drop in demand and impact of processor shortages, says IDC. “All-in-One, Ultrasmall and small desktops saw a combined growth of 23% YoY, while convertibles and ultraslim notebooks observed a cumulative growth of 75% YoY. Traction towards exciting new categories such as branded gaming notebooks continued clocking a growth of 123% YoY. Gaming and new form factors have been driving the growth of the premium market segment in this year,” says Research Manager, IPDS & PCD, IDC India.
Consumer Notebook shipments saw a growth of 0.7% over last year owing to increase in demand for growing categories like gaming and ultraslim notebooks, thereby commanding a share of 82% out of the overall consumer PC market while Consumer desktops saw an annual decline of 10.2% due to the weakening contribution of the unbranded desktops.
This year, the commercial shipments declined by 4%, recording a total volume of 4.76 million units, as the year did not see any large-scale special projects in the education segment. Large and Very Large businesses saw a total growth of 17.6% YoY. Companies in IT/ITES and BFSI have been driving the spending in the Enterprise segment. Consumer PC market registered an overall shipment of 0.91 million units in 2018Q4, which is a 25.7 % decline over last year, according to IDC. The decline in the segment was a result of the excess inventory being carried forward from 2018Q3 owing to a drop in festive buying from consumers, aggravated further by channel partner issues across the country.
The overall commercial PC market recorded a total shipment of 1.08 million units in 2018Q4, a decline of 22.1 % over last year. The drop is largely attributed to the sluggish demand from the SMB segment
owing to credit uncertainty and lack of execution of large special projects. Moreover, challenges in fulfilling enterprise orders due to processor shortages also accounted for the drop in commercial volumes.
Top 3 Company Highlights: HP Inc.
HP Inc. led the overall Indian traditional PC market with a 31.0% share in 2018 and recorded a YoY shipment growth of 0.6%. The vendor has maintained its dominance in the consumer PC market in 2018, growing 5.6% YoY due to continuous engagement with channel community and penetration across Tier 2 and Tier 3 states to increase footprint and build brand awareness. The vendor led the commercial segment in 2018 with key strategic wins in enterprise accounts in IT/ITES vertical but registered a decline of 3.9% in shipments YoY as the vendor was not able to execute high-volume special projects in the public sector segment.
Dell remained second with a 23% share in 2018 but witnessed a soft decline YoY in shipments by 0.2% in the overall traditional PC market. In the consumer market, Dell Inc. was down by 11.5% YoY owing to challenges within the channel towards Q2 and Q3 in 2018. The vendor recorded a growth of 10.6% YoY in the commercial segment, driven by the refresh in enterprise demand and strong positioning within global accounts across the large and very large business.
Lenovo held the third position with a 20.6 % market share in the overall India traditional PC market in 2018, which is a marginal decline of 1.3% in shipments YoY. The consumer PC business grew by 17.0% YoY in 2018 as the company aggressively captured consumer mindshare in the ultraslim notebook category and continued with online channel focus and regional exclusive store penetration. Lenovo’s commercial segment dropped by 13.3 % YoY in the year as the company did not witness the execution of large manifesto projects. However, the company saw strong growth in the Enterprise and SMB segments.
The market witnessed challenges owing to the aggressive stocking of inventory, drop in demand and impact of processor shortages, says IDC