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Wipro Exits PC Manufacturing Business; Wants To Focus On IT Solutions

wipro

Wipro has exited the PC business according to the company’s BSE listing (pdf) to strengthen its position as a system integrator and will increase its focus on IT solutions and services. Wipro’s competitor HCL had also announced that it is phasing off its manufacturing business over the next three years as part of a company-wide restructuring, to focus on services.

Wipro will continue in the PC business, by offering solutions by suitable brands as part of large integrated deals. Soumito Ghosh, Senior VP and Head of Wipro Infotech justified the move by saying that manufacturing PCs was not giving the company any cost differentiation for its system integration solution offering.

Wipro also said that all employees affected by the move will be re-employed within the company. It will also fulfill AMC obligations as per terms for existing customers. It’s Systems and Technology page currently lists only helpline numbers and download link for drivers as opposed to the earlier page which had detailed information on its PC and laptops, along with their power consumption.

PC market down in India

According to latest IDC report, the overall India PC shipments for Q3 2013 stood at 3.24 million units, a growth of 8.4% from Q3 2012, but down 8.3% from the previous quarter.

In terms of vendor share, Hewlett-Packard dominated the market with 32.3%, followed by Lenovo with 13.6% and Dell with 11.8%. Acer came fourth with 10.5% while the other brands made up a combined 31.8%. IDC expects Q4 to crumble because of seasonality and price hike that it feels will disrupt PC buying in the quarter ending December. Additionally, elections in Delhi, civil issues in the state of Andhra Pradesh are further expected to impact the overall buying in some of these larger states. It also said that excitement around product transitions to Intel’s Haswell family of processors and the launch of Windows 8.1 may not drive demand in the near future.

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