India PC market fell 15% in 2016 on sluggish consumer demand: IDC

NEW DELHI: PC shipments in India declined by 15.2 per cent year-on-year to 8.58 million units in 2016 on account of sluggish consumer demand and subdued large projects, research firm IDC said today.

"The overall market declined initially owing to reduced consumer demand and high inventory in the first half of 2016. However, PC sales recovered starting June owing to strong consumer sentiment backed by seasonality and increase festive demand," IDC said.

The consumer PC market recorded 4.22 million units in 2016, with an year-on-year decline of 12.9 per cent over 2015.

With high inflation and ongoing fiscal consolidation, consumer sentiment remained frail until first half of 2016, IDC India Associate Research Manager Client Devices Manish Yadav said.

"However, with subsiding inflation and benefit from the Pay Commission award, continued low commodity prices and measures announced in the Union Budget to transform the rural sector created just the right buzz for PC purchase in CY 2016," he added.

The commercial PC market recorded 4.35 million units in 2016, with a y-o-y drop of 17.4 per cent over 2015.

"Barring fulfilment of limited large education projects, the year witnessed muted investment and delayed spending from government segment in the second half of 2016. Enterprises consumption had been the mainstay in holding up the aggregate demand during the same period," Yadav said.

HP led the market with 28.4 per cent market share, followed by Dell (23.3 per cent) and Lenovo (17.6 per cent).

"With increase adoption of digital transaction and affordable PCs; consumer PC market is setting up for a revival in CY 2017," Yadav said.

He added that commercial market is anticipated to observe execution of state owned education projects across different states in 2017 and the incremental spending from BFSI and government verticals will further strengthen the overall category growth.

PC shipment in the fourth quarter stood at 1.92 million units, witnessing a y-o-y drop of 23.6 per cent.

"Outside strong festive demand, the quarter did observe impact of demonetisation and limited execution of large projects compared to Q4 CY 2015," IDC said.