Sales of PCs, which include desktop, mini-notebooks and other portable personal computers, are expected to be muted in the July-September quarter on account of subdued spending from the government and corporate sector, research firm IDC has said.
However, it projected that consumer PC sales may light-up in the same period helped by the upcoming festive season.
“PC business continues to thrive on wafer thin margins and it is still early to comment on the success of new form factors, which were anticipated to drive the overall value of this business.
“Also, outside special projects, demand from enterprises and government remain largely suppressed painting a gloomy scenario on commercial PC business, in the near future,” IDC Market Analyst Manish Yadav said.
PC demand in one of the world’s fastest emerging markets remains a matter of concern, IDC said.
“Organic demand for PCs in India outside special projects has weakened, which remains a cause of concern for PC vendors. Further, rupee slide derailed enterprise spending, as the investment decisions remained seemingly delayed across most of the verticals,” IDC Research Manager Kiran Kumar said.
Spending by state governments on notebooks steered the commercial investments in the Indian PC market in Q2 2013. The special projects currently being executed in UP, Rajasthan and Tamil Nadu accounted for roughly one-third of the total PC market size in Q2, Kumar added.
India’s PC shipments in April-June 2013 stood at 3.53 million units, a year-on-year growth of 24 per cent and a quarter-on-quarter surge of about 30.2 per cent.
However, the research firm indicated that there is a silver lining in the dark clouds over the sector. The third quarter of a year has historically witnessed strong consumer buying in lieu of forthcoming festive season in various parts of the country. This is also well aided by the back-to-school/college season and related campaigns undertaken by vendors and partners across different regions, it said. “IDC expects 2013 to be no different,” it added.
July remained upbeat and the firm is noticing the growth will continue into August too, IDC said.
Consumer sentiments have peaked in at the right time as they begin to reconcile with the market reality on inflation and related pressures, it added.
“Retail walk-ins have improved and share of consumer wallet looks to move back to PCs, which is an encouraging sign,” Kumar noted.