Emerging Cities Help PC Rebounds in India

With the improved end user buying sentiments, post elections in Q2 2014 there has been an impressive hike in overall consumer spending on PCs in the past few months starting June and forthcoming festive season is only expected to boost the further growth. According to IDC, the India PC market stood at 2.55 million units in Q2 2014 with top five states Tamil Nadu, Maharashtra, Delhi, Karnataka & Andhra Pradesh contributing 62.3% of the overall PC market. This growth is primarily driven by state govenment manifesto for students such as the one noticed in Tamil Nadu (ELCOT-III) in CY 2014.

With the change dynamics end-user spending is back on PCs as now consumer desire to buy PC as their next purchase against devices like Smart phones and Tablets in India. According to IDC, HP & Dell both share more than 85 percent brand visibility followed by Lenovo with a brand visibility of 80 – 85 percent.

It can be said that Q3 2014 will be a positive quarter for the consumer PC market as the end-user demand is expected to outstrip expectations early this quarter. In addition, launch of low cost PCs has added a fresh lease of life to the overall PC business in India and vendors like HP & Lenovo stand to gain from this development in Q3 2014.