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Indian PC Market driven by Phenomenal Growth of Notebook
PCs in the Second Quarter of 2006, says IDC India

 

 

Gurgaon/New Delhi, August 29, 2006

The Indian PC market has crossed yet another milestone with over two lakh (219,000) notebook PC shipments in a single quarter. During the AMJ  quarter of 2006, the Indian Client PC market witnessed a 19% year-on-year growth to reach 12.5 lakh units, according to IDC's India Quarterly PC Market Tracker, 2Q 2006, August 2006 .

"While the AMJ quarter witnessed a sluggishness in the desktop PC market with a sequential decline of 5%, notebook PC shipments continued to expand. This arose as  notebooks are increasingly being      used by  the increasingly mobile  workforce to be productive and respond in a competitive environment", said Piyush Pushkal, Senior Market Analyst, PC Research, IDC India.

In the overall PC  market, the Top 3 rankings remained unchanged - HP retained the top spot with a market share* of 20%, followed by HCL at 14%, and Lenovo at 10% in terms of unit shipments.

In terms of total desktop PC shipments* HP led the market in the AMJ quarter of 2006 followed by HCL and Lenovo. In terms of total notebook PC shipments* HP was the top vendor.

India Preliminary PC Shipments by Form Factor

Year-on-Year Growth (AMJ 2006 over AMJ 2005)**

Consumer Desktops

16%

Commercial Desktops

5%

Desktop PC Total

9%

Notebook PCs

113%

Client PC$ Total

19%

Year-on-Year Growth – April 2006-June 2006 over April 2005-June 2005
                   $ Includes all Desktop and Notebook shipments

Some of the major highlights in 2Q 2006 were:

  • A 113% year-on-year growth* (2Q 2006 over 2Q 2005) in notebook PC shipments: attributed to aggressive channel and end-user promotions from vendors such as HP, Toshiba, Lenovo and Dell
Buoyant buying sentiment in the small and medium business segments - shipments grew 12% sequentially* (2Q 2006 over 1Q 2006)

The notebook PC market took another great leap in India during 2Q 2006 crossing the 2-lakh shipments per quarter mark for the first time. The consumer notebook PC category witnessed a 16% sequential growth and 438% year-on-year growth. Coupled with aggressive marketing by vendors, the Small and Medium Business segment witnessed a massive growth of 102% year-on-year* (2Q 2006 over 2Q 2005) in notebook PC shipments.

According to Piyush, “This form factor is expected to grow promisingly with education institutions and corporations being the major contributors. IDC also anticipates increased demand from consumers as they buy additional computers.”

He further added “While affordability has in large measure led to this phenomenal growth story, there is another important side to this tale. An analysis by price shows that the highest growth has been witnessed in shipments of notebook PCs with ASV (Average Sale Value)  between Rs. 52,500 – Rs. 65,500. This price band recorded a growth of 391% Y-o-Y (2Q 2006 over 2Q 2005) and 54% q-o-q (2Q 2006 over 1Q 2006).”

The commercial desktop PC category witnessed 8% sequential decline but a 5% year-on-year growth. HCL led the ranks followed closely by HP. Lenovo and Dell, however, grew faster at sequential growth rates of 24% and 80% respectively. "The market witnessed a slack in the channel white-box business in anticipation of future price cuts on Intel processors during this quarter. For the large corporate segment, it was business-as-usual but it was the Small and Medium Business segments which recorded a 33% growth year-on-year (2Q 2006 over 2Q 2005) that contributed significantly to this market performance", said Piyush. The consumer desktops segment witnessed a flat performance with a 16% year-on-year growth (2Q 2006 over 2Q 2005) . HP gained the top slot followed by HCL and LG Electronics at second and third spots, respectively.

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Email: vbhatnagar@idcindia.com

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