India PC market grows 12.1% in Q2 despite price hikes and supply constraints, IDC reports

New Delhi: India's PC market recorded a 12.1% year-on-year growth to 3.9 million units in the June quarter, despite price hikes and supply constraints, as enterprises and retailers stocked up inventory ahead of further price increases, research firm IDC said in a report on Tuesday.

IDC expects the second half of the year to be flattish for enterprise sales of PCs while consumer sales could see a sharp slowdown as rising costs may prompt buyers to delay their purchases.

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But the market expects pent-up demand to be unlocked during the festive season once promotional cycles begin, said Bharath Shenoy, research manager, devices research, at IDC.

"Despite signs of moderating end-user demand, channel partners and e-tailers continued to build up inventory aggressively through the quarter, positioning themselves ahead of the Independence Day sales period and the upcoming festive season," he noted.

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Future expectations of price hikes are also added incentives for retailers to stock up and protect margins, even as near-term sales are soft, Shenoy said.