PC Mar­ket De­clines Due to Slug­gish Con­sumer De­mand And Sub­dued Large Projects In CY 2016: IDC

The DQWeek (Kolkata) - - CHANNEL BONANZA - DQW NEWS BU­REAU New Delhi

Ac­cord­ing to In­ter­na­tional Data Cor­po­ra­tion (IDC), the over­all In­dia PC mar­ket for CY 2016 stood at 8.58 mil­lion units i.e. a year on year drop of 15.2 per­cent over CY 2015. How­ever, out­side spe­cial projects the over­all In­dia PC mar­ket wit­nessed a year on year drop of 7.5 per­cent in CY 2016.

The over­all mar­ket de­clined ini­tially ow­ing to re­duced con­sumer de­mand and high in­ven­tory in H1 2016. How­ever, PC sales re­cov­ered start­ing June ow­ing to strong con­sumer sen­ti­ment backed by sea­son­al­ity and in­crease fes­tive de­mand. Form Fac­tor High­light in CY 2016, with a year on year de­cline of 12.9 per­cent over CY 2015. Ac­cord­ing to Man­ish Ya­dav , As­so­ciate Re­search Man­ager, Client De­vices, IDC In­dia “With high in­fla­tion and on­go­ing fis­cal con­sol­i­da­tion, con­sumer sen­ti­ment re­mained frail un­til H1 2016. How­ever, with sub­sid­ing in­fla­tion and ben­e­fit from the Pay Com­mis­sion award, con­tin­ued low com­mod­ity prices and mea­sures an­nounced in the Union Bud­get to trans­form the ru­ral sec­tor cre­ated just the right buzz for PC pur­chase in CY 2016.” mil­lion units in CY 2016, with a year on year drop of

- ited large ed­u­ca­tion projects, the year wit­nessed muted in­vest­ment and de­layed spend­ing from gov­ern­ment seg­ment in H2 of CY 2016. En­ter­prises con­sump­tion had been the main­stay in hold­ing up the ag­gre­gate de­mand dur­ing the same pe­riod.” said Ya­dav Top 3 Ven­dor High­lights:

HP Inc.: per­cent in the over­all In­dia PC mar­ket in CY 2016, growth over CY 2015. The ven­dor con­tin­ues to dom­i­nate in the con­sumer PC busi­ness with 26.8 per­cent mar­ket share for the third year in a row; HP Inc. has recre­ated its brand in In­dia PC mar­ket with strong prod­uct place­ment and ag­gres­sive mar­ket­ing cam­paigns sup­ported by new in­no­va­tive prod­ucts like Spec­tre. The ven­dor also led the com­mer­cial cat­e­gory with the ex­e­cu­tion of spe­cial projects and strong hold in en­ter­prise ver­ti­cal as well.

Dell: per­cent in over­all In­dia PC mar­ket in CY 2016 and took

Ship­ment Share by Seg­ment(%), In­dia PC Mar­ket CY 2016 and CY 2016

the sec­ond spot. The ven­dor con­tin­ues its in­vest­ment in ex­pand­ing chan­nel strength and re­mained fo­cused on ad­dress­ing new op­por­tu­ni­ties in seg­ments like gov­ern­ment and ed­u­ca­tion. Ow­ing to which Dell gained around per­cent mar­ket share in CY 2016 in the over­all com­mer­cial cat­e­gory against CY 2015.

Len­ovo: Len­ovo held on to the third spot, with an over­all mar­ket share of 17.6 per­cent in CY 2016. The ven­dor de­clined by 5.8 per­cent­age point in CY 2016 over CY 2015 in over­all In­dia PC mar­ket. With changes around GTM strate­gies and in­ter­nal struc­ture, the ven­dor’s con­sumer busi­ness did ob­serve a drop of 2.5 per­cent­age points year on year in CY 2016, fur­ther the drop was aided ow­ing to lack of spe­cial project ex­e­cu­tion against CY 2015. How­ever, mar­ket be­lieves Len­ovo will bounce back in CY 2017 by lever­ag­ing its im­proved mar­ket­ing strate­gies and chan­nel strength backed by in­no­va­tive prod­uct line-up. IDC In­dia Fore­cast: On short term, pos­i­tive con­sumer spend­ing is lead­ing

Ship­ment Share by Ven­dor(%), In­dia PC Mar­ket CY 2016 and CY 2016

to healthy sell out and ex­pected to build a strong base for H1 CY 2017; un­like CY 2016 which was badly hit ow­ing to slug­gish con­sumer de­mand from start of the year. “With in­crease adop­tion of dig­i­tal trans­ac­tion and af­ford­able PCs; con­sumer PC mar­ket is set­ting up for a re­vival in CY 2017.” said Ya­dav Fur­ther the com­mer­cial mar­ket is an­tic­i­pated to ob­serve ex­e­cu­tion of state owned ed­u­ca­tion projects across dif­fer­ent states in CY 2017 and the in­cre­men­tal spend­ing from BFSI and gov­ern­ment ver­ti­cals will fur­ther strengthen the over­all cat­e­gory growth. IDC In­dia Q4 CY 2017: CY 2015. Out­side strong fes­tive de­mand, the quar­ter did ob­serve im­pact of de­mon­eti­sa­tion and lim­ited ex­e­cu­tion

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