Computing News

Overall PC Market to Decline in CY 2014 : IDC

Hopes Windows XP might drive volumes but will be negated by lack of buying from the Government vertical

According to IDC, the overall India PC shipments for CY 2013 stood at 11.5 million units that is a year-on-year growth of 4.8% over CY 2013. The overall market improved marginally on account of buying across different state governments as part of their distribution of free laptops to students.

The commercial PC segment hit a high of 6.7 million units in CY 2013, with a year-on-year growth of 15.8% over CY 2012. IDC India Q4 2013 report states that India PC shipment for Q4 2013 stood at 2.03 million, i.e. quarter-on-quarter drop of 37% over Q3 2013 & year-on-year drop of 19% over Q4 2012.

Manish Yadav, Market Analyst, IDC, commented, “There was a lot of uncertainty amongst investors and businesses. Buying decisions were noted to be typically stretched over 2-3 quarters.”

Kiran Kumar, Research Manager, IDC, said, “The scenario on the consumer PC segment was no different. The overall consumer PC market recorded 4.8 million units, a year-on-year drop of 7.4% over CY 2012.”

“The soaring consumer inflation tightened up the discretionary spending for consumers. Further shift in share of wallet towards smartphones and tablets have led the demand trends to be adverse,” opined Kumar.

But IDC anticipates the overall PC market to decline in CY 2014. With no big announcements around education projects, the decline could be steep, primarily in the commercial PC segment. Also, with general elections around the corner, the focus is expected to be on populist measure and hence the buying decisions in state owned organizations and e-governance projects is expected to be much delayed.

“The refresh buying on Windows XP might drive volumes amongst Enterprises but we expect the same to be negated by lack of buying from the Government vertical,” added Yadav.

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