Indian PC Market Grows 4% In Q4 2023, Local Manufacturing Efforts Ramp Up

• IT procurement by enterprises and SMBs, delayed in the first half of 2023, is starting to take place and is expected to accelerate this year. 
• Most OEMs shifted their focus to local assembly, with nearly 27 manufacturing firms approved under the PLI 2.0 scheme.

The Indian PC market, including desktops, notebooks, and tablets, experienced a 4% year-on-year (YoY) growth in Q4 2023, with 4.3 million units shipped. Despite this quarterly growth, PC shipments overall fell by 11% in 2023. 

The Indian PC market faced high inventory levels at the end of 2023 due to a supply push driven by fears of import restrictions. The government’s subsequent easing of these restrictions allowed vendors to focus on inventory correction, supporting a second consecutive quarter of shipment growth. The 2023 holiday season also showed positive signs related to consumer sentiment toward discretionary spending.

This growth was primarily driven by a 27% increase in desktop shipments, reaching 884,000 units. Notebooks saw a modest 3% growth to 2.3 million units, while tablet shipments declined by 9%, with 1.1 million units shipped. 

Although, overall PC market declined, a strong rebound is expected in 2024, with all three categories predicted to see robust growth, particularly tablets, which are expected to increase by 24% year-on-year. In the commercial space, IT procurement by enterprises and SMBs, delayed in the first half of 2023, is starting to take place and is expected to accelerate this year. 

Public sector tenders have been experiencing delays due to the upcoming general elections in Q2 2024. In spite of these challenges, the ‘Make in India’ initiative has spurred many original equipment manufacturers (OEMs) to ramp up local manufacturing efforts. Most OEMs have shifted their focus to local assembly in line with government initiatives, with nearly 27 manufacturing firms approved under the PLI 2.0 scheme.

In terms of market share and annual growth in Q4 2023, HP led with a 24.9% market share and 11.5% growth, followed by Lenovo, Acer, Dell, Apple, and others. The total market share for all vendors was 100%, with a 3.7% annual growth.

AI-capable PCs are expected to experience a substantial boost in the commercial refresh cycle as the end of Windows 10 approaches, with commercial uptake expected to be stronger initially.  According to Canalys report,  robust double-digit percentage growth is expected in both the commercial and consumer segments in 2024, with a 14% YoY increase to be followed by a 15% growth in 2025.