HP regained its leadership position in the Indian PC market. Despite gaining momentum in the last quarter of 2017, Dell lost its lead in the declining but still healthy segment.
According to CyberMedia Research’s (CMR) “India PC Market Review for 1Q CY2018”, the PC segment was led by Hewlett Packard (HP). The company had lost the position to Dell last year, but managed to regain the same this year. HP currently has a healthy 28.9 percent market share in the overall PC market in India.
Dell was the market leader for most of last year. It managed to maintain its lead until the end of 2017, but lost in the first quarter of the current year. It currently sits at the second position with 23.4 percent market share in Q1 2018. Lenovo is closely following Dell. With a market share of 21.8 percent in overall traditional PC market, Lenovo may overtake Dell if the market conditions change.
The PC Market Isn’t Great, But Sales Are Expected To Climb:
Although HP, Dell, and Lenovo have a lot to look forward to in the current year, the PC segment as a whole isn’t looking healthy.
The PC market in India fell 8.4 percent in the first quarter of 2018. The consumer segment declined by 9.2 percent in Q1 2018 compared to Q4 2017. The enterprise segment, which is important for PC makers, fell by 7.8 percent. These are concerning numbers for HP, Dell, Lenovo, and others.
The PC market is increasingly facing heat from the rapidly expanding smartphone and mobile computing. However, it is not ailing, confirmed the report. On the contrary, the sale of personal computers is expected to rise by about 4 percent. Incidentally the consumer segment was once considered an important aspect of PC sales. However, with the advent of mobile computing and the increasing power of smartphones, has pushed back PC sales. Newer generations are now experiencing the internet or the virtual world on their smartphones first. Hence they completely forgo the PC experience. But they certainly need desktops for gaming and office work.
— SwiftElectronics (@swifttronics) July 1, 2018
Essentially, the consumer segment is no longer the driving force behind the PC sales. The report forecasts it will be the enterprise segment that will be most important area for PC manufacturers. The PC market could grow by about 4 percent if it is steadily driven by the enterprise segment. Overall, large organizations are expected to boost their acquisitions of PCs by about 5 percent this year, whereas the consumer segment is likely to continue dragging its feet with a measly 2 percent growth as compared to last year, concluded the report.
What Can PC Makers Do To Improve The Situation And Push Sales
The mobile computing segment isn’t going to allow the PC market an easy way. Nor is it going to ease up anytime in the foreseeable future. Smartphones today pack processors that rival desktop computers. Many of the flagship devices in the mobile computing department pack as much as 8 GB of RAM. Even today, 4 GB and 8 GB RAM is common in computers.
— Robin Hugo (@RobinHAtDell) June 28, 2018
Although the situation might appear tough, HP has managed to regain its lead through innovative thinking. The report mentions, “HP regained top spot with high level of retail penetration. Initiatives focusing on customers and catering to gaming PCs were the main drivers for HP’s growth.” What the report clearly indicates that HP focused on retail customers and pursued them actively. Moreover, it managed to tap into the small but growing market of gaming PCs.
The forecast isn’t bleak for the PC market. In fact, PC makers and vendors are already testing new methods to boost sales. They are exploring ways to reward partners who come up with clever sales techniques. Besides the enterprise segment, the PC manufacturers and retailers also have the rural areas where the education segment needs computers for mass education programs. Considering the data, the report does indicate market growth for reminder of CY2018.