India PC shipments set to fall in double digits in ‘23: Analysts

NEW DELHI : India’s PC market appears to be nearing the highest of its covid-induced runway progress with analysts predicting a substantial drop this 12 months.

According to data shared by Gartner, Indian shipments of laptops and desktops are anticipated to drop 13.4% this calendar 12 months to 12.4 million objects from 14.4 million last 12 months. Even though the second half of the 12 months have to be larger for PC companies, analysts said the product sales progress seen inside the last two years is unlikely to be repeated anytime rapidly.

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Graphic: Mint

Analysts said the weak effectivity is pushed by an inflation-led drop in demand, which is predicted to proceed this 12 months. PC producers, too, are susceptible to control unsold shares due to the continued demand hunch.

“The first half of 2023 is predicted to be weak, as inventory is lowered after which recovered inside the second half, as inventory clears and orders stream by. As you could want seen, the first quarter of 2023 was down 30% worldwide, and India did not escape this, nevertheless was larger than elsewhere,” said Ranjit Atwal, senior director analyst at Gartner.

Navkendar Singh, associate vice president at IDC India also said PC shipments in India are set to decline this year. A February report by IDC said total shipments of desktops, notebooks, and workstations in India grew by only 0.3% year-on-year (YoY) in 2022, despite a 28.5% drop in Q4 2022.

Singh attributed the tepid market forecasts to high inflation, recession fears and overall cautiousness around spending across both consumers and enterprises. “Also, with offices and schools reopening, demand has softened and/or is getting postponed,” he added.

That said, Singh opines that the Indian market may start rebounding inside the second half of the 12 months. “But that additionally gained’t be wherever close to the levels of the ultimate 2 years.”

Gartner has projected PC shipments to recuperate to a double-digit progress of 13.8% in 2024.

This 12 months’s weak level will happen following two years of sturdy progress in PC product sales after the covid outbreak pressured a shift in route of distant working and finding out.

According to IDC data from that 12 months, India shipped a record-high 14.8 million PCs along with desktops, laptops, and workstations in 2021 at an annual progress worth of 44.5%.

“The PC market continues to be rising in India, with new prospects coming in on the patron side and digitization of enterprise creating new demand on the enterprise side. Gaming must develop to be a driver as further prospects switch to larger-screen PCs for a further immersive experience,” said Gartner’s Atwal.

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