Fueled by Government Orders, PC Shipments Hit a New High. But How Many Are Still Lying in Godowns?

A record of 3.53 million personal computers were shipped in the second quarter of 2013, says IDC.
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A record total of 3.53 million personal computers were shipped in the second quarter of this year.

The report by market research firm IDC says that PC shipments for Q2 2013 grew by 24% over the second quarter of 2012 but was up 30.2% over the first quarter of this year.

The increase in the number of shipments was attributed mainly to states spending on notebooks that were promised in their election manifestos. This was seen in states like Uttar Pradesh, Rajasthan and Tamil Nadu. This contributed almost a third of all PC shipments, which means the organic demand for PCs in India outside special projects has weakened, which remains a cause of concern for PC vendors, IDC said.

Enterprises also delayed any new orders in PC orders due to the extreme volatility of the rupee.

PC Market Share By Vendor

PC-market-q2-2013

The report also highlighted the market share among the top players in the country. Hewlett-Packard had a commanding share of 34.1% which was over three times more than its nearest rival Dell, which had an 11% share. Acer had a 10.4% share while Lenovo had just 9.3% share in Q2 2012. All the others combined had 35.2%.

HP record share was mainly because it had secured the largest notebook deal to supply notebooks to the state of Uttar Pradesh. It had reportedly bagged a Rs 830 crore order to supply over 5 lakh laptop to students in the state. But another report in the middle of July stated that UP chief minster Akhilesh Yadav was only able to distribute 79,000 laptops while the remaining were gathering dust in a godown.

Acer was another vendor that was able to increase its market share due to it bagging the deals in Tamil Nadu and Rajasthan.

A report at the end of the July said that the Tamil Nadu government was going to procure 5.65 lakh more laptops for students, and that all the big names – Hewlett Packard, Acer, Lenovo and HCL were in the fray for this tender.

A report by industry body MAIT last month had stated that sale of tablets was “cannibalizing” PC sales. It said that while personal computer sales between April 2012 and March 2013 grew only 5%, tablet sales grew 424%.

Looks like PC makers are surviving on poll promises and maybe in for a bit of ride has more states go to the polls at the end of the year.

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