PC shipments at pre-2010 levels
Fear of uncertainty and a massive destocking spree among manufacturers ahead of the goods and services tax (GST) have pushed personalcomputershipmentsalmosteightyearsback. IntheJune 2017quarter, PCshipmentplummetedtothelevelitwaseightyears ago. Thenumberplunged18.2percentto1.75millionunits— close to 1.76 mn units in April-June 2009.
The consumer PC segment fell 23 per cent from the corresponding quarter last year to 0.81 mn units. The previous time consumer PC shipment had come this low was in the December quarter of 2009, when it declined to 0.83 mn. Commercial PC shipment went down 14 per cent to 0.94 mn units— similar to 0.96 mn shipped in the December quarter of 2008.
According to industry sources, the free fall on shipment was mainly due to a fear among companies that primary sales would remain low once GST started in July. “In anticipation of poor offtake during the initial phase of the GST regime, we had marked down our sales forecasts. Thus, the shipped numbers were also lower than the normal,” a senior executive from one of the top players said.
Manish Yadav, associate research manager, client devices, IDC India, said: “Outlook on discretionary spending remained optimistic. However, channel partners remained cautious and planned for de-stocking due to GST, which led to fewer sales in the quarter. GST implementation has impacted business even as the effect of demonetisation subsided.”
Analysts from IDC predicted the market would revive soon as the festive season was around the corner. State-sponsored educational projects and a massive procurement drive adopted by the Electronics Corporation of Tamil Nadu might help the commercial PC segment. “Demand for PCs would also be fuelled by small business as this segment of users would look to comply with GST norms electronically,” said Yadav.
Market leader HP strengthened its dominance by increasing its share to 33.8 per cent during the June quarter, 5.4 percentage points higher than 28.4 per cent during the year-ago period.