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Last updated: November 30, 2012 at 8:50 am

India’s Consumer Desktop Market Declines, Lenovo Tops

The PC market in India declined 5.9% in the third quarter of 2012, according to a Gartner report. Nearly 2.9 million or 29 lakh PCs sales were logged during July to September 2012 out of which 13.63 lakh were to consumers. PC sales remained constant sequentially as 29 lakh units were shipped in Q2 2012, a 17% increase over Q2 2011.

PC Market Share

Sales to consumers accounted for 47% of total PC sales. A quarter on quarter and a sequential decline was noted for the same as PC shipments to consumers in Q2 2012 and Q3 2011 accounted for 50% and 55% of total shipments respectively. This hinted towards lack lustre buying from consumers despite the run up to the festive season.

"This emphasizes the fact that despite the festive season and availability of various end user schemes on PCs, the market was impacted by high inflation, global economic uncertainty and limited share of wallet as consumers preferred to spend on other consumer durables" said Vishal Tripathi, Principal Research Analyst, Gartner.

Lenovo continued to maintain top market share. Its products accounted for 17% of total PC sales in India, indicating that the company extended its lead in market share over other players with a sequential as well as a quarter on quarter growth.

Partial executions of the company’s ELCOT deal with the Tamil Nadu government have repeatedly contributed to Lenovo’s shipments throughout all the three quarters of 2012. The Chinese PC maker seems to be eager to capitalize on its market presence in the tech domain to cash in on the surging demand for smartphones. The company recently launched its Ideaphone series of android based smartphones.

Taiwanese multinational Acer had the second highest market share of 15.7% while HP was marginally behind with 15.5%. Acer maintained lead over HP after edging over the American tech giant in Q2 2012.

Despite losing 2nd place in the previous quarter, HP’s market share increased from 13.3% in Q3 2011 to 15.5% during the same period in 2012. Indian PC maker HCL’s market share deflated by 43%. Its products accounted for only 3.4% of all the PC shipments in Q3 2012.

Effectively, more than 60% of the total PC shipments in India in the third quarter of 2012 were of multinational brands including Chinese, Taiwanese and American. HCL remained the sole domestic player holding fort in the top 5. On the other hand the tablet market in India has a local player with top market share. According to CyberMedia Research, Gurgaon based Micromax had an 18.4% market share in Q2 2012 followed by Samsung with 13.3% and Apple with 12.3%.

It emerges that the decline in India’s PC market is not singled out as PC shipments on a global basis have contracted by 8% in Q3 2012. Commentators are hopeful of a revival post holiday season however recent trends seem to make it evident that consumer preference towards smaller and more mobile devices is gathering momentum.

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