In the second quarter of 2023, the Indian PC market (including desktops, notebooks and tablets) declined by 15% year-on-year to 3.9 million units shipped. Notebook shipments fell 12 percent to 2.3 million units, while desktop shipments fell 17 percent to 764,000 units. Tablet shipments fell the most, down 22 percent to 873,000 units. However, the PC market (excluding tablets) experienced 2% sequential growth, with renewed optimism in the industry.
All segments of the Indian PC market are experiencing varying degrees of decline. According to Canalys analyst Ashweej Aithal, “The education sector suffered a 23% decline, mainly due to delays in tablet purchases. Despite this, the Indian government has introduced new initiatives to provide laptops to students, and states such as Gujarat, Tamil Nadu and Madhya Pradesh have made some progress.
Although the economic environment has improved, the commercial sector still experienced a significant decline, influenced by small and medium-sized enterprises. The public sector also experienced a 9% decline, but some positive transactions indicate that the market is poised for growth by the end of 2023. The tender in the education sector is entering its final stages, with large-scale tablet deployments starting in October and lasting six months. While the consumer market was down 13 per cent year-on-year, it achieved 7 per cent quarter-on-quarter growth, indicating positive signs of recovery as the festive season approaches.”
Canalys expects the Indian PC market, including tablets, to decline by 9% in 2023. However, the Indian market will see a strong and solid recovery in 2024 and 2025, with shipments expected to grow by a significant 15% in these two years. Its growth is expected to cover all categories and market segments. PC usage and adoption demand in India remains strong and Canalys expects it to surpass the peak shipments reached in 2022.
Aithal added, “The recent import restrictions imposed by the Indian government on personal computers (including tablets) will disrupt the market, especially for overseas players who have not yet started local manufacturing. The disruption is expected to intensify by the end of 2023, with restrictions set to begin in November. Therefore, manufacturers will actively replenish inventory for the consumer market and the commercial market. A looming equipment shortage could prompt manufacturers to speed up orders. In addition, manufacturers may need to apply for additional import permits, but at the same time the government is speeding up the permit approval process to mitigate price increases caused by expected equipment shortages.”
PC analysis
Canalys’ global PC Analytics business provides market-leading, comprehensive, timely and high-quality shipment data tracking services to manufacturers, product and channel strategy makers to help customers accurately size the market, analyze competition and identify growth opportunities. Canalys PC shipment data has a precise and detailed tracking dimension, guided by a strict methodology, broken down into different dimensions such as market, supplier, channel, CPU, storage and memory. In addition, Canalys also publishes quarterly forecasts to help clients better understand the future development of the PC industry and the changing industry landscape, and provide professional data support for clients to formulate global strategies. Canalys’ global multilingual team of analysts provides clients with dedicated analysis sessions and helps decision-makers gain insight into the most critical market trends, providing third-party insights and actionable recommendations with multiple layers of data analytics.