With rampant inflation in most sectors of the economy, people have lot less to spend on personal computers.
The new report from Gartner indicates that factors like rising interest rates and stubborn inflation have started bogging down Indias personal computer market. The PC market has witnessed a growth of mere 2.5 percent to 2.5 million units in the quarter ended this June, as compared to the same quarter last year.
Vishal Tripathi, the principal research analyst at Gartner said, This growth was primarily driven by the mobile PC market which grew 17 percent year on year in the second quarter of 2011. Economic factors such as rising interest rates and high inflation costs resulted in slower consumer demand. With the recent hike in commodity pricing such as fuel and food items, the cause of concern continues to exist in the Indian market.
Amongst all the major vendors, HP has experienced maximum amount of decline in sales. It is now Indias number three PC vendor in terms of sales. Dell is the number one vendor, and the Taiwanese company, Acer, is the new incumbent for the number two position in the Indian PC market. Dell has a market share of 17 percent, and Acers market share is 12 percent. The top four vendors - Dell, Acer, HP and Lenovo - account for 50.4 percent of the PC sales in India. The local vendor HCL accounts for 6.6 percent of the PC shipments in the second quarter of 2011.
The desktop market has shown a sharp decline by 5 percent. But there is growth in the market for laptops and netbooks by around 17 percent.
However, Gartner is optimistic that the outlook for PC market in India might improve from Q3 and Q4. Vishal Tripathi says, We expect the market to perform far better in the coming quarter to due the festive season which is considered as auspicious for buying.