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Indian PC market declined 18.9% QoQ in Q2’17 due to impact of GST: IDC

The Indian PC market shipments declined by 18.9% QoQ to 1.75 million units during the quarter ended June 2017 (Q2 2017) due to the impact of Goods and Services Tax implementation, research firm IDC said in its Quarterly Personal Computing Device Tracker report. On a YoY basis, shipments declined by 18%.

In the previous quarter, the Indian PC industry shipped 2.16 million units, posting a growth of 12.5% QoQ after the impact of demonization settled. But soon as cash flowed into the economy, implementation of GST reduced PC unit stocks which led to lesser sales in for Q2 2017, IDC said. The most impact was felt on the consumer segment when compared to the commercial PC segment.

“The channel partners (or distributors) remained cautious and planned for de-stocking due to the impact of the GST implementation…(It) has (also) impacted the (PC) business in India even as the effect of demonetization has subsided. Further, concerns related to new demand and new investment also turns as binding constraint on business sentiment,” IDC said.

Shipments by Industry category

  • The consumer PC market shipped 0.81 million units during Q2 2017, down 22.6% from 1.05 million unit shipments in the previous quarter. On YoY basis, consumer PC shipments declined by around 22.7%.
  • The commercial PC market shipped 0.94 million units during Q2 2017, which is a decline of 13.4% from 1.11 million units in the previous quarter. On a YoY, basis, commercial PC shipments were down by 13.4%. Apart from GST, “lack of fulfilment of special projects and slowness observed in government spending” affected the commercial PC segment, according to IDC.

Shipments by PC factor

  • Laptops: The consumer notebook or laptop segment accounted for a majority (34.4%) of PC shipments in India during Q2, which is declined from a 38.4% share that it held in the previous quarter. Commercial Notebook shipments accounted for 19.6% of shipments in India during Q2, down from a 19.6% market share in the previous quarter.
  • Desktops: The consumer desktop segment accounted for a minority share of just 11.8% of the shipments in Q2, which increased from a 10% market share in the previous quarter. The commercial desktop segment, accounted for 32.5% of overall PC shipments in India during Q2 2017, up from 28.2% market share in Q1 2017.

Top three vendors

  • Hewlett Packard’s (HP) PC shipments accounted for a majority (33.8%) of the overall shipments by vendors during Q2. The company’s shipments fell by 6.5% when compared to the previous quarter.
  • Dell had a 17.7% market share during Q2, with shipments declining 57.8% when compared to the previous quarter mostly due to GST implementation.
  • Lenovo took the third spot with a 16.9% market share in Q2 2017, with shipments growing by just 1.3% points when compared to Q1 2017.

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