GST Roll-out Hurts PC Shipments in India: IDC
An IDC report reveals how the PC industry in the country has suffered from post GST impacts, seeing a decline in both the consumer and commercial segments. Read to know more about the rising issue.
(Photo for representation. Image: Reuters)
It looks like the PC industry in India is on a continuous decline since last year. A recent study by IDC has indicated an 18.9 percent quarter-on-quarter decline in the traditional PC shipments for Q2 of 2017 in India. The total count of the shipped PCs for Q2 stands at 1.75 million units, an 18 percent decline over the same period last year.
Much of this drop is seen in the consumer PC market, with the total shipment under this segment being 0.81 million units in Q2, 2017, a 22.7 percent decline as compared to Q2, 2016. On the commercial end, a 13.4 percent YoY decline was observed as a result of GST implementation and reduced Government expenditure. The overall shipment count under the commercial PC segment was limited to 0.94 million units in the Q2 of 2017.
The study takes into account, the PC shipments of 3 IT giants of India, namely HP Inc, Dell Inc and Lenovo. HP led the overall India traditional PC market with 33.8 percent share of the total shipment in Q2 this year, registering a 6.5 percent growth QoQ. On the other hand, Dell Inc came in second with 17.7 percent market share. Yet, the company observed a decline of 57.8 percent QoQ, owing to the stock reversal and postponed sell-in until Q3.
Lenovo meanwhile, was placed on the third spot with a 16.9 percent overall market share and a 17.4 percent market share in the consumer segment, pushing it to the second spot in the category. The company also saw an increase of 1.3 percent QoQ in the consumer segment due to increased shipment.
A growth in the Indian PC market is expected with an increase in consumer spending and the fulfilment of ELCOT and other state owned education projects. Additionally, small businesses who comply with GST may become major contributors to this growth.
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