India witnessed a remarkable surge in personal computer (PC) shipments during the third quarter of 2023, reaching a historic high of 4.5 million units. This 14% year-on-year (YoY) increase, as reported by the International Data Corp (IDC), is attributed to a heightened demand for inventory, spurred by the Indian government’s move to mandate import licenses for PCs.
License-Driven Sales Boost
In a strategic move, the Government of India mandated import licenses for PCs starting October 30. Although this decision faced a subsequent hold, it triggered a surge in shipments as vendors sought to mitigate potential risks of supply shortages and price hikes, ensuring ample supplies for the festive season sales.
Category-wise Growth
Breaking down the PC market dynamics, the desktop category witnessed a robust growth of 19.3%, while notebooks recorded a significant rise of 13.1%. This surge in demand, fueled by licensing considerations, contributed to the overall industry’s impressive performance.
Commercial vs. Consumer Sector Dynamics
While the commercial sector exhibited stability, the consumer sector experienced a noteworthy upswing of 26.3% compared to the previous year. The licensing requirements played a pivotal role in shaping consumer buying patterns during the quarter.
Market Leadership Landscape
HP Inc emerged as the market leader, securing a 29.4% share, up from 23.9% in the corresponding quarter of the previous year. Following closely were Lenovo and Dell, with market shares of 17% and 14.6%, respectively. Despite Lenovo experiencing an 8.8% decline, Asus captured attention by witnessing a substantial 43.9% increase in shipments, claiming 12.5% of the market share.
Brand Dynamics and Online Channel Influence
Notably, Asus, with a 43.9% jump in shipments, accounted for 12.5% of all sales during the quarter. Acer strategically pushed stock through online channels, marking its most significant consumer quarter to date. The competitive landscape is dominated by brands like Dell, Acer, Samsung, Panasonic, Apple, Lenovo, and HP.
Industry Outlook and Historical Context
In 2022, the traditional PC market in India, comprising desktops, notebooks, and workstations, experienced marginal year-over-year growth of 0.3%, reaching 14.9 million units. However, the fourth quarter of 2022 saw a notable year-over-year decline of 28.5%, emphasizing the resilience and adaptability of the industry.
Navigating License Dynamics in the PC Market
The surge in Q3 PC shipments in India reflects the industry’s ability to respond dynamically to regulatory changes. As licensing considerations continue to influence the market landscape, industry players are adapting strategies to meet evolving consumer demands and maintain robust growth.
