Wednesday, 29 July 2020 05:46

Indian PC market shrank just 33% in 2Q despite total lockdown for 45 days

Indian PC market shrank just 33% in 2Q despite total lockdown for 45 days Canalys

The Indian PC market has shrunk by only a third in the second quarter of the year following a complete shutdown of the country for 45 days due to the coronavirus pandemic, reaching 2.9 million units, the technology analyst firm Canalys claims, with shipments of desktops, notebooks, tablets and workstations all taking a dive.

Desktops showed the biggest drop quarter-on-quarter, falling from 884,000 units to 440.000, as demand fell and a preference for notebooks grew.

Notebook shipments also fell, by 32% year-on-year, while tablets did somewhat better with shipments falling 9% to 740,000 units.

Chinese PC manufacturer Lenovo continued to hold the top position among suppliers in 2Q, shipping 818,000 PCs. The company's tablet business gave it an edge over the competition, accounting for 29% of its total shipments this quarter.

HP, despite only taking second position with 692,000 shipments, led the individual categories of desktops and notebooks with shipments of 572,000 and 119,000 units respectively.

india pcs 2q

Third-placed Dell saw a year-on-year dip of 20% and Samsung took fourth place with 173,000 units, on the back of commendable tablet numbers. The South Korean vendor was the only one in the top five to increase its shipments.

Fifth-placed Acer saw shipments decrease by 46% as it prioritised markets other than India.

“The top-line numbers don’t tell the whole story. This was actually a strong quarter for PCs,” said Canalys research analyst Varun Kannan.

If one does not take Lenovo’s ELCOT deal in 2Q 2019 with the government of [the south Indian state of] Tamil Nadu into account, notebook shipments have actually gone up by 15% compared to the corresponding period last year. Given that the quarter had just 45 operational days, that is an incredible feat.”

canalys india 2q pcs

IT companies such as TCS, HCL, Infosys and Wipro had all announced arrangements for employees to work from home for the foreseeable future due to the lockdown.

“The COVID-19 pandemic forced most IT companies in India to forego their strict office-based working policies in favour of adopting new hybrid working arrangements to ensure business continuity during the lockdown," Kannan said.

"This led to panic-buying of PCs and accessories, cleaning out inventories almost everywhere in the country. The days of writing off inventory with markdowns and discounts have vanished.”

He said the PC industry still faced an unstable future, despite the boost.

“A slow return to normal will prompt many companies to reduce spending or even downsize, which will have a rollover effect on IT expenditure. But online learning will remain a bright spot in the coming quarters, driven by government and private technology companies’ initiatives, and PC hardware vendors should follow up quickly to capture the opportunities arising in this segment," Kannan added.

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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