Indian PC shipments Hint recovery despite 15% drop in Q2 2023: Canalys

According to the latest data from Canalys, in the second quarter of 2023, Indian PC shipments hit a total of 3.9 million (including desktops, notebooks, and tablets). This figure represents a decline of 15% in comparison to the previous year's numbers. A closer look at the data reveals that notebook shipments experienced a 12% drop, with 2.3 million units sold. Desktops, on the other hand, fell by 17% to 764,000 units. The most significant decline was seen in tablet shipments, which decreased by 22% to 873,000 units.

Despite the overall decline in PC shipments, the market excluding tablets showed a promising 2% sequential growth, which has brought renewed optimism to the industry. This growth is a positive sign for the industry, and it will be interesting to see whether it continues in the coming quarters. The data highlights the challenges facing the PC industry in India, and vendors will need to adapt their strategies to overcome these challenges and drive growth in the market.

In Q2 2023, all segment categories in India’s PC market underwent a year-on-year decline. “The education sector suffered a notable 23% drop, mainly due to delayed tablet deployments,” said Canalys Analyst Ashweej Aithal. “Nevertheless, new government initiatives to provide students with notebooks made some progress in states such as Gujarat, Tamil Nadu, and Madhya Pradesh.” Despite improved economic sentiment, the commercial sector experienced a substantial decline, driven largely by SMBs. The public sector also saw a 9% decrease, but a few promising deals hint at potential growth by the end of 2023. “The anticipated closure of education tenders is in its final phase, with most deployments expected in October and spanning the next six months,” said Aithal. Though the consumer market declined by 13% year on year, it achieved 7% sequential growth, indicating positive signs of recovery as the festive season approached.

Canalys' most recent projection for the Indian PC market, encompassing tablets as well, anticipates a 9% decline in shipments for 2023. However, there's a bright outlook for a resurgence in both 2024 and 2025, with shipments expected to exhibit robust year-on-year growth of 15% in each of these years. This growth is poised to extend across all categories and end-user segments. The foundational factors supporting PC usage and adoption in India remain robust, and Canalys anticipates surpassing the shipment peak achieved in 2022.

“The Indian government’s recent imposition of import restrictions on desktops, notebooks, and tablets is set to disrupt the market, particularly affecting major foreign vendors that have yet to initiate local manufacturing,” said Aithal. “This disruption is anticipated to intensify toward the end of 2023, with restrictions slated to commence in November. Consequently, vendors are set to aggressively push inventory in both the consumer and commercial segments. In response to the impending scarcity of devices, there may also be an uptick in rapid deal closures. Vendors could face the need for additional import licenses, but the government is expediting the licensing process to mitigate price surges caused by the anticipated scarcity.