India’s Personal Computer market (including desktop, notebook and workstation) shipped 3.4 million units in the second quarter (Q2) of 2019, a 49.2 per cent year-on-year (YoY) rise. Lenovo led the market, while HP slipped to second spot and Dell came in third, according to an International Data Corporation (IDC) report.

According to a statement, the growth was mainly due to the commercial segment driven by the fulfilment of the education deal by the Electronics Corporation of Tamil Nadu Ltd (ELCOT). As per the deal, the Tamil Nadu Government plans to distribute about 1.5 million laptops to students.

Lenovo led India’s traditional PC market in Q2 of 2019 with an overall market share of 46.2 per cent, even though the vendor witnessed a 14 per cent YoY fall in the consumer segment.

Despite posting strong quarter across consumer and commercial segments, HP slipped to second spot. It had an overall market share of 22.4 per cent.

Dell had a relatively weak quarter, with the vendor slipped to the third spot as its share fell to 14.2 per cent. The vendor had a YoY decline of 10.1 per cent.

The ‘Notebook’ category grew by 81 per cent YoY contributing 74.3 per cent of the overall India traditional PC market, which is again attributed to the ELCOT deal. Ultraslim category, with a share of 21.1 per cent of the total notebook's category, grew by 92.7 per cent.

The consumer PC market declined by 14 per cent, as the expected revival post-elections remained subpar and the overall pessimism of previous few quarters continued in the second quarter.

The footfalls in Large Format Retails (LFR) and branded shops remained weak, while the online channel picked up towards the end of the quarter. Also, the consumer response to "back to school" campaigns was less than expected. Dell channel partners faced credit issues leading to inventory correction, thereby impacting fresh consumer shipments. The Gaming PC segment, however, grew by 41.1 per cent and continues to be one bright spot in the struggling consumer PC market.

The overall commercial PC market grew by 108 per cent; taking the total shipments to 2.43 million units. This growth was driven by a single 1.11 million units ELCOT deal. Even outside ELCOT, the commercial market did well with a growth rate of 12.6 per cent YoY.

"The model code of conduct impacted the first two months of the quarter, but things picked up post-election. Strong performance from the SMB sector and corporates because of Windows 10 refresh coupled with a strong performance from the BFSI sector and increased global refresh orders helped commercial segment stay positive," said Bharath Shenoy, Market Analyst, PC, IDC India.

Market to decline in third quarter

IDC anticipates the decline of the traditional India PC market in the third quarter since a major portion of the ELCOT deal has been reported in Q2.

"Fresh demand by medium and large enterprises is expected to continue. Global refresh orders are also expected to continue among the top brands as Windows 10 refresh would start gaining momentum. The consumer market is expected to pick up largely because of multiple rounds of online sales commencing with Independence Day in August leading up to Diwali in October. Instant cashback and EMI options will drive consumer purchases," said Nishant Bansal, Senior Research Manager, Intelligent Printer Data Stream (IDPS) & PC, IDC India.