Indian PC market shrinks by 35% in Q1 2023: How the top five brands performed – Times of India
The Indian PC market, which includes desktops, notebooks and tablets, suffered a massive year-on-year decline of 35% in the first quarter of 2023 (Q1-2023). According to a report, about 3.9 million of these units were shipped in Q1 2023.
Canalys reports that laptop shipments saw a sharp decline of 41% and reached 2.1 million units, while desktop shipments also fell by 7% to reach 859,000 units. Meanwhile, tablet shipments went down by 37% at 987,000 units. The report notes that despite the significant annual decline, Q1 2023 shipments remain above pre-pandemic levels.
In this quarter, shipments in the Indian PC market were 47% higher than in Q1-2019. As per the report, consumer, commercial, as well as education shipments were affected in the quarter. The report claims that consumer and commercial segment shipments fell 34%, whereas education shipments were down 45% in Q1 2023.
“All end-user segments are suffering from a short-term slowdown in demand, market saturation and elevated inventory levels. But, according to a recent survey by the Reserve Bank of India (RBI), consumer confidence is on an upward trend, and there has been an improvement in sentiment regarding general economic conditions,” said Canalys analyst Ashweej Aithal
“Meanwhile, business confidence levels have come down from the highs of 2022 but remain well above the historical average. Education and public sector tenders that had been on hold for an extended period are expected to close by June, which will help drive shipments in the second half of the year. All this suggests that while the market is currently experiencing a dip, a recovery is anticipated, and India will be an increasingly important market for the global industry,” Aithal added.
Indian PC market may grow in the coming years
The report also predicts that the Indian PC market is expected to come back strongly with 11% growth in 2024 and a further 13% growth in 2025.
“Vendors remain optimistic about the Indian market and are taking steps to target its growing consumer base. HP announced its first gaming experience zones, known as Omen Playground stores, in February, with a plan to expand to over 40 outlets over the course of the year. Apple opened its first stores in Mumbai and New Delhi in April,” Aithal noted.
“Beyond the move to drive interest through offline retail locations, vendors are also increasingly turning to manufacturing in India, helping ensure future supply to the market and allowing them to tap into new commercial opportunities,” Aithal added..
How the top brands performed in Q1 2023
Most PC (excluding tablet) vendors faced notable double-digit shipment declines in India in Q1 2023, the report adds. The report also claims that they prioritised working through substantial inventory build-up.
In Q1 2023, HP’s shipments went down by 30% but the company was the market leader with a 34% share. Meanwhile, Dell finished in a close second spot but saw the biggest decline in shipments (41%) among the top five brands.
Lenovo with a 38% shipment decline grabbed the third spot while Acer came in fourth with a lower 10% shipment drop. The report claims that Acer was helped by its participation in government tenders and its major desktop business. Lastly, Asus took the fifth position with a 27% shipment decline.
The report also notes that tablet shipments in India went down below the million-unit mark for the first time in eight quarters. Samsung regained the top spot with a 32% market share in Q1 2023 by overtaking Apple during the holiday season. The South Korean giant’s participation in education tenders this year is expected to help the company’s future shipment numbers, the report adds.
Apple took second place with a relatively small shipment decline of 16%. Lenovo came in third in the tablet market but suffered a huge 65% fall in shipments as both consumer and commercial demand for its tablets dropped significantly. Meanwhile, Realme and Acer took the fourth and fifth spots in the market, respectively.
Canalys reports that laptop shipments saw a sharp decline of 41% and reached 2.1 million units, while desktop shipments also fell by 7% to reach 859,000 units. Meanwhile, tablet shipments went down by 37% at 987,000 units. The report notes that despite the significant annual decline, Q1 2023 shipments remain above pre-pandemic levels.
In this quarter, shipments in the Indian PC market were 47% higher than in Q1-2019. As per the report, consumer, commercial, as well as education shipments were affected in the quarter. The report claims that consumer and commercial segment shipments fell 34%, whereas education shipments were down 45% in Q1 2023.
“All end-user segments are suffering from a short-term slowdown in demand, market saturation and elevated inventory levels. But, according to a recent survey by the Reserve Bank of India (RBI), consumer confidence is on an upward trend, and there has been an improvement in sentiment regarding general economic conditions,” said Canalys analyst Ashweej Aithal
“Meanwhile, business confidence levels have come down from the highs of 2022 but remain well above the historical average. Education and public sector tenders that had been on hold for an extended period are expected to close by June, which will help drive shipments in the second half of the year. All this suggests that while the market is currently experiencing a dip, a recovery is anticipated, and India will be an increasingly important market for the global industry,” Aithal added.
Indian PC market may grow in the coming years
The report also predicts that the Indian PC market is expected to come back strongly with 11% growth in 2024 and a further 13% growth in 2025.
“Vendors remain optimistic about the Indian market and are taking steps to target its growing consumer base. HP announced its first gaming experience zones, known as Omen Playground stores, in February, with a plan to expand to over 40 outlets over the course of the year. Apple opened its first stores in Mumbai and New Delhi in April,” Aithal noted.
“Beyond the move to drive interest through offline retail locations, vendors are also increasingly turning to manufacturing in India, helping ensure future supply to the market and allowing them to tap into new commercial opportunities,” Aithal added..
How the top brands performed in Q1 2023
Most PC (excluding tablet) vendors faced notable double-digit shipment declines in India in Q1 2023, the report adds. The report also claims that they prioritised working through substantial inventory build-up.
In Q1 2023, HP’s shipments went down by 30% but the company was the market leader with a 34% share. Meanwhile, Dell finished in a close second spot but saw the biggest decline in shipments (41%) among the top five brands.
Lenovo with a 38% shipment decline grabbed the third spot while Acer came in fourth with a lower 10% shipment drop. The report claims that Acer was helped by its participation in government tenders and its major desktop business. Lastly, Asus took the fifth position with a 27% shipment decline.
The report also notes that tablet shipments in India went down below the million-unit mark for the first time in eight quarters. Samsung regained the top spot with a 32% market share in Q1 2023 by overtaking Apple during the holiday season. The South Korean giant’s participation in education tenders this year is expected to help the company’s future shipment numbers, the report adds.
Apple took second place with a relatively small shipment decline of 16%. Lenovo came in third in the tablet market but suffered a huge 65% fall in shipments as both consumer and commercial demand for its tablets dropped significantly. Meanwhile, Realme and Acer took the fourth and fifth spots in the market, respectively.
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