PC market grew 17% in Q2.Lenovo grows by 86%, Dell slips to #4

The combined desk-based and mobile PC market in India totalled nearly 2.9 million units in the second quarter of 2012, a 17 per cent increase over the second quarter of 2011, as per Gartner report.

While Dell’s market share dropped to 12.9%, Lenovo’s market share in India has grown to 16.6%, 86% growth compared to last quarter.

Few key insights from Gartner report:

  • Consumer buying accounted for 50 percent of total PC sales in the second quarter of 2012. The consumer PC sales grew 24 percent sequentially, which emphasizes the fact that media tablets are not yet cannibalizing the PC market in India like in the West
  • Vendors such as HP, Lenovo, Asus and Samsung registered more than 50 percent growth in the consumer segment.
  • Ultrabooks are still finding it difficult to penetrate the market.
  • Mobile PCs, which grew 54 percent compared to the second quarter of 2011, helped drive overall market growth.
  • White boxes (including parallel import), which accounted for 45 percent of the overall desktop market, declined 18 percent in the second quarter of 2012 in comparison to the second quarter of 2011.
  • Local vendor HCL’s PC market share saw a flat growth of 0.2 percent, and its market share dropped to 5.6 percent in the second quarter of 2012.
  • The top four multinational brands (Acer, Dell, HP and Lenovo) contributed 56 percent of the market
Vendors
2Q12 Market Share (%)
2Q11 Market Share (%)
Lenovo
16.6
10.4
Acer
13.4
12.1
HP
13.1
11.2
Dell
12.9
16.7
HCL
5.6
6.6
Others
38.4
43.0
Total
100.0
100.0

Rise of Lenovo

Execution of a substantial part of the Tamilnadu government order, very aggressive price points and increased channel activities helped Lenovo’s PC shipments grow 86 percent and retain its No. 1 position in the second quarter of 2012.

Fall of Dell

The company is finding it difficult to do business in India. As per a recent interview with Reuters, Dell APAC head shared the following:

“Policies like retroactive taxes…are a huge risk for us to make an investment. We just do not know how to assess our results and how to report our results globally. That sort of a set-up doesn’t work for any global company for that matter.

What are your thoughts on reasons behind Dell India’s fall? Do you blame it on lack of good support?