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Indian PC shipments down 15% in CY16 due to demonetization & low demand: IDC

The Indian PC industry shipped at 8.58 million units during the calendar year 2016 (CY16), which is a drop of 15.2% when compared to CY15, research firm IDC said in a report. According to the firm, the overall PC market India posted a slower growth in 2016 due to:
-Lower consumer demand that couldn’t keep up with a supply of high inventory during the first half of 2016. The demand, however, increased during June due to seasonal and festive influences.
-Demonization impacted both online and offline retails sales in Q3 2016. IDC hat cut down sales forecast by 3-5% during the last quarter. Additionally, PC shipments in the consumer segment were expected to drop 33% in Q4 2016.

PC shipments declined 23% QoQ in Q4 2016

During the quarter ended December 31st, 2016 (Q4 2016), the Indian PC market shipped 1.92 million units, which is down 23.4% from 2.51 million units in the preceding quarter. On a year on year basis, shipments were down 23.6%. “Outside strong festive demand, the quarter did observe impact of demonetization and limited execution of large (enterprise) projects compared to Q4 2015,” IDC said. In the previous quarter (Q3 2016), PC shipments were down 22.5% YoY, mostly due to the effect of demonetization.

Shipments by Industry category

The consumer PC market shipped 4.22 million units in CY 2016, which is down 12.9% year on year decline. IDC said that consumer category shipments were impacted due to “high inflation and ongoing fiscal consolidation, consumer sentiment remained frail until H1 2016 (first half of 2016).”

On the other hand, the commercial PC market shipped 4.35 million units during CY 2016, which is a decline of 17.4% YoY. IDC said that “the year (2016) 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.”

Shipments by PC category

The consumer notebook or laptop segment accounted for a majority (38%) of PC shipment in India during the year 2016, which in up from a 35.8% share that it held in the previous year. Commercial Notebook shipments accounted for 21.2% of shipments in India during the same year, down from a 25.9% market share in 2015.

The consumer desktop segment accounted for a minority share of just 11.2% shipments in 2016, which decreased from a 12.1% market share in the previous year. The commercial desktop segment, accounted for 29.6% of overall shipments in India during 2016, up from 26.2% market share in 2015.

Top three vendors

Hewlett Packard’s (HP) PC shipments accounted for a majority (28.4%) of the overall shipments by vendors during 2016. The company’s shipments grew by 3% points when compared to 2015.  “The vendor continues to dominate in the consumer PC business with 26.8% market share for the third year in a row,” IDC said.

Dell had a 23.3% market share during 2016, gaining at least 4.9% points when compared to the previous year. It also held a 24.5% market share of the overall commercial category during 2016.

Lenovo took the third spot with a 17.6% market share in 2016, which declined by 5.8% points when compared to the previous year.

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