PC sales may remain muted in July-September, finds research firm

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01 Sep 2013 , 12:23

New Delhi:Sales of PCs, which includedesktop, mini-notebooks and other portable personal computers,are expected to be muted in the July-September quarter onaccount of subdued spending from the government and corporatesector, research firm IDC has said.

However, it projected that consumer PC sales may light-upin the same period helped by the upcoming festive season.”PC business continues to thrive on wafer thin margins andit is still early to comment on the success of new formfactors, which were anticipated to drive the overall value ofthis business.

“Also, outside special projects, demand from enterprisesand government remain largely suppressed painting a gloomyscenario on commercial PC business, in the near future,” IDCMarket Analyst Manish Yadav said.

Representational image. Reuters
Representational image. Reuters

PC demand in one of the world’s fastest emerging marketsremains 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 theinvestment decisions remained seemingly delayed across most ofthe verticals,” IDC Research Manager Kiran Kumar said.

Spending by state governments on notebooks steered thecommercial investments in the Indian PC market in Q2 2013. Thespecial projects currently being executed in UP, Rajasthan andTamil Nadu accounted for roughly one-third of the total PCmarket size in Q2, Kumar added.India’s PC shipments in April-June 2013 stood at 3.53million units, a year-on-year growth of 24 per cent and aquarter-on-quarter surge of about 30.2 per cent.

However, the research firm indicated that there is asilver lining in the dark clouds over the sector.The third quarter of a year has historically witnessedstrong consumer buying in lieu of forthcoming festive seasonin various parts of the country. This is also well aided bythe back-to-school/college season and related campaignsundertaken 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 growthwill continue into August too, IDC said.

Consumer sentiments have peaked in at the right time asthey begin to reconcile with the market reality on inflationand related pressures, it added.

“Retail walk-ins have improved and share of consumerwallet looks to move back to PCs, which is an encouragingsign,” Kumar noted.

PTI


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