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Big Education Projects in India Sustain Hewlett Packard’s PC Sales

PC manufacturer Hewlett-Packard has a lot to thank the Indian government for. According to a recent report the company’s year-on-year growth in the Asia Pacific region for the year 2013 was entirely due to fulfillments for a big education project in India.

In 2013 HP won a large deal from the Uttar Pradesh government to supply over 5 lakh laptops to students in the state.

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Similarly Acer also had won deals from the governments in Tamil Nadu & Rajasthan for distribution as part of the political party’s poll campaign promises.

The appreciation of the dollar against the rupee is another factor that will erode margins for PC makers in India, this year too.

The Asia/Pacific(excluding Japan) PC market declined 10% in full year 2013 to reach 108 million units. Distractions to consumers from smartphones and tablets over the year was a major contributing factor for the decline in PC market, according to the latest IDC report.

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Lenovo retained its top spot, although it could not shrug off the slump in its home market China, posting an annual decline in 2013 as a result.

The slump in the Chinese market also affected US PC manufacturer Dell, which otherwise had a good year, in the region. Asus, too, fell in line with the overall market trend, declining year on year, while Acer continued to struggle with its product strategy, declining in nearly all markets in the region this year.

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