India’s PC market growth declines for first time in two years: Report | Biden News

India shipped 3.9 million PCs, including desktops, notebooks and workstations, during the quarter. The consumer segment saw 2.1 million units shipped, with PC shipments during the quarter falling 10.9% YoY, despite seeing some growth in September due to online sales.

IDC attributes the overall decline to the weakening of demand across sectors, except for government orders, which grew 91.5% YoY. The general business segment decreased 12.5% ​​YoY.

Notebooks, which account for 70% of total PC shipments, were down 19.5% YoY. According to IDC, demand for notebooks has declined across segments, forcing vendors to prioritize clearing inventory.

“A weakened currency results in rising hardware costs and pricing pressure for vendors,” said Bharath Shenoy, senior market analyst, IDC India.

Shenoy added that sellers have delayed prices due to online sales in the September quarter. They could increase prices in the December quarter, which could “decrease sentiment” further.

Demand for premium notebooks (over $1,000) in the business segment fell by 28.5%, as most companies seek to cut expenses due to economic uncertainty and fear of recession.

However, not all segments were affected by the decline. An IDC report shows that demand for desktops and workstations remained strong during the quarter, resulting in YoY growth of 23.4% and 17.6% respectively.

Demand for premium notebooks such as Apple MacBooks and Asus gaming laptops in the consumer segment also grew by 9.8% YoY.

IDC analysts predicted that demand was likely to remain sluggish.

“We expect a slowdown in computer procurement from the IT/ITES sector, which is typically one of the biggest buyers. Similarly, we are witnessing some sluggishness in SME procurement as they are challenged by inflation and credit crunch,” Navkendar said. Singh, associate vice president, device research, IDC India, South Asia and ANZ.

Singh pointed out that the government and education sectors are seeing some orders, which are expected to drive demand in the business segments in the next two quarters.