PC Makers Find It Hard To Break The Stronghold of Smartphones In India & China

Manufacturers are unable to make buyers in India and China prioritize PC purchases over smartphones, slowing down the recovery of the global PC market.

India and China are among the fastest growing smartphone markets in the world, and the tiny handheld devices are in many ways primary computing device of the region’s people. This is serving to be a big headache for ailing PC makers, as they struggle to grow sales in both of these fast growing economies.
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According to research firm Gartner, PC shipments in the Asia Pacific region clocked in at 26.6 million units in Q4 of 2014, a meager 2 percent growth when compared to sales in Q4 of 2013. The biggest contributors to this phenomenon is the inability of PC makers to convince buyers in India and China prioritize PC purchases over smartphones.
Internet access in these regions is mainly for content consumption and communication, two tasks which smartphones and tablets excel over traditional notebooks and desktops. Moreover, given the limited spending power of bulk of the populations in both countries, buyers are delaying PC purchases in favour of cheaper smartphones and tablets.
A remedy to the problem has been traditional PC manufacturers sinking their feet into the smartphone and tablet markets, with prime focus being on the Indian and Chinese markets. However, given the incredibly competitive environment in the handheld computer space, big guns like HP, Dell and Acer haven’t really been able to make a dent in the market.
The world’s largest PC manufacturer Lenovo however has managed to make inroads in the smartphone and tablet space, already claiming the title of the world’s largest tablet manufacturer and is among the top five smartphone manufacturers globally. This success has mainly come from its focus on mid-range devices and serving its home market of China, and to a lesser extent India.
Global PC Sales Q4 2014
Acer recently market its re-entry into the smartphone space, with developing markets being its point of maximum focus. The move is indicative of the overall state of the PC market, where manufacturers are looking to grow sales in India and China by serving the competing market space of handheld devices. In the short term they’re eyeing growth in revenues, but are also looking to cement themselves in the minds of buyers to future-proof their PC sales.
While Gartner points the the results in its report are only preliminary findings, it’s clear that the PC market in India and China aren’t recovering as well as say the US market. Sales in the US were bolstered by new devices in the $200 – $300 mark, but even at this price point, PCs are a hard sale in countries like India and China. This inability of manufacturers to infiltrate the PC markets in the two regions however is driving innovation in the smartphone space, with devices getting cheaper and better with every passing day.

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