Canalys: Indian PC and Tablet Market to Grow 12% in Q2 2022

According to the latest report released by Canalys, the growth of PC shipments (desktops, laptops and tablets) in India slowed to 12% to 4.6 million units in the second quarter of 2022. This is the first time in the last four quarters that shipments in this market have fallen below 5 million units. Laptops remained the largest category with 2.6 million units shipped, up just 2% year-on-year due to subdued demand in the consumer market. Desktop PC shipments reached a record 900,000 units in the second quarter of 2022, an increase of up to 70% year-over-year. Shipments of tablet PCs increased 9% year over year to 1.1 million units.

Ashweej Aithal, analyst at Canalys, said: “With the orderly reopening of schools across India and consumer demand tapering, the consumer market slumped 12% in the second quarter, ending seven consecutive quarters of record gains. The segment accounted for 48% of the Indian PC market, down from 61% in the second quarter of 2021. Declining demand for tablets and notebooks led to a decline in shipments in the consumer market, with shipments falling in these two categories respectively 23% and 11%. HP maintained its dominance in this segment with a 23% market share through aggressive retail store expansion nationwide. Lenovo achieved strong growth of 19% on the back of the notebook category’s strong performance in offline channels, number two.”

On the other hand, the commercial market grew by a substantial 50% year-on-year. Currently, shipments in this segment account for 52% of the Indian PC market share. While notebook shipments accounted for more than half of the commercial PC market, shipments of desktops and tablets in this segment rose 105% and 109%, respectively, and were the key driver of overall growth in the most recent quarter. “The high growth in the commercial market is partly attributable to poor market performance in the second quarter of 2021 when the pandemic hit hard,” Aithal said. Leading. Lenovo is second with a 20% market share, but further penetration into the education market remains a huge challenge for the vendor.”

Leading PC manufacturers will prioritize investing in local manufacturing to capture business opportunities, especially in government procurement,” Aithal continued, “At the same time, manufacturers investing in local manufacturing will be eligible to take advantage of the ‘Make in India’ initiative launched by the Indian government. ‘PLI (Production Linked Incentive Program) gets a lot of support. HP has expanded notebook production in the country, thereby increasing its share of public sector purchase orders. Lenovo also intends to increase the local supply of tablets and laptops through a third production line to capture more purchases in the education market. In addition, Acer has also cooperated with Dixon Technologies, a manufacturer compliant with the PLI program, to jointly manufacture notebook computers.

“Canalys expects India’s commercial PC market to boom as demand for government sector procurement and corporate computer procurement expands. The upcoming festive season and back-to-school events will also continue the upward momentum in the consumer market. However, inflation It remains a concern for SMEs and consumers alike,” Aithal said. “Vendors must monitor the risk of inventory buildup as demand may decline faster than expected.”

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