It's Just A Bend, Not The End

The PC market went through a challenging phase during 2016. the year ahead looks better given the government’s digital initiatives

If we look at CY 2016, it’s not a very good year for the PC market in India. According to IDC, the overall India PC market for CY 2016 stood at 8.58 million units - a year on year drop of 15.2% over CY 2015. The overall market declined initially owing to reduced consumer demand and high inventory in H1 2016. However, PC sales recovered starting june owing to strong consumer sentiment backed by seasonality and increase in festive demand.

As we drill down further, as per IDC the consumer PC market recorded 4.22 million units in CY 2016, with a year on year decline of 12.9% over CY 2015. IDC says that high inflation and ongoing fiscal consolidation, consumer sentiment remained frail until H1 2016. How ever, with subsiding inflation and benefit from the Pay Commission award, continued low commodity prices and measures announced in the Union Budget to transform the rural sector created just the right buzz for PC purchase in CY 2016.

Meanwhile, the overall commercial PC market recorded 4.35 million units in CY 2016, with a year on year drop of 17.4% over CY 2015. “Barring fulfillment of limited large education projects, the year witnessed muted investment and delayed spending from government segment in H2 of CY 2016. Enterprises consumption had been the mainstay in holding up the aggregate demand during the same period,” says IDC.

According to an IDC press release, it made the following comments on the Top 3 PC vendors in the country:

HP INC.: