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February 12, 2011

HP Regains Lead as India PC Market Grows By 16%

India PC Market Share Estimates for Fourth Quarter of 2010 (Percentage of Shipments)
 4Q10 Market Share (%)

The combined desk-based and mobile PC market in India totalled nearly 2.7 million units in the fourth quarter of 2010, a 16.2 per cent increase over the fourth quarter of 2009, according to Gartner, Inc. This growth rate was more than five times the worldwide PC market’s growth average in the fourth quarter of 2010.Personal computer maker Hewlett-Packard (HP) has regained its numero uno position in India after losing it for two consecutive quarters in 2010 to Dell. The company clocked a higher market share than Dell in the October-December quarter last year.

“This growth was primarily driven by the mobile PC market which grew 39 percent in the fourth quarter of 2010.A fall in prices, large deals from governments and demand from consumers and the education sector drove Mobile PCs sales. Many small and midsize businesses are buying mobile PC’s which is further fuelling growth.”

All the major PC vendors experienced high double-digit high growth in mobile PC shipments in the fourth quarter of 2010. Multinational brands continued to do well with shipments from Acer, Dell, HP and Lenovo, the top 4 vendors, representing 49.1 percent of total shipments in the fourth quarter of 2010 (see Table 1).  Local vendor HCL accounted for 7.8 percent of PC shipments in the fourth quarter of 2010. HP regained sales leadership position in 4Q and for all of 2011 closely followed by Dell.

However according to market intelligence firm IDC  Indian PC market grew by 31% in 2010 and is expected to grow to 22% In 2011.The overall sales growth of 31% was largely led by consumer spending. "The growth of notebook PCs in 2011 will accelerate to 42% leading to an overall growth of 22% in terms of unit sales year-onyear. 
Yearly PC sales for the U.S. and the main regions of the world are summarized in the next figure. North America will remain the largest region until 2009. All figures are in millions of units.(sourcevia link)

IDC India attributes the relatively slower PC sales growth expected in 2011 to the effect of a larger base. Government, education, ITeS and telecom verticals are expected to continue to invest in or refresh their PCs. PC purchases by BFSI, retail and healthcare verticals are expected to pick up in 2011.

Adoption of a notebook PC as the first PC is likely to show growth in 2011, but overall notebook PC shipments are likely to stay lower than desktop PC shipments.
IDC India expects the overall average selling price (ASP) of desktop PCs to drop in 2011 by about 13 per cent and notebook PC prices to drop by about 5 per cent.

Table 1.5  New PC Opportunities
Opportunity PC Products Comments
Home network servers All types of PCs, from desktop PCs to low-end servers Synchronization and information sharing between multiple devices
Media PCs PC & server for photo, music and TV/video applications Will expand consumer PC market due to multiple PCs per households
Tablet PCs Portable PCs with handwriting input Expands notebook PC market
Netbook PCs Low-cost and small notebook PC Expands office & home markets
Mobile Internet Device (MID) Similar to netbook w/broadband link · Based on Intel Atom microprocessor Competes with high-end Smartphones. Windows versus Linux battle ground
Smartbook Between Smartphone & netbook Windows & Linux platform battle
Handheld PCs PCs in handheld form factor · Similar to PDAs & Smartphones First products are emerging, but will be important in 3-5 years.
Service infrastructure for web cell phones PC servers—low-end to high-end products will gain most of this market 10 year potential is 1B+ devices that will need information from servers
Web caching networks PC servers—mostly high-end products will gain most of this market Web caching networks are used to improve web access performance
Content development systems All types of PCs, but mostly high-end desktop PCs Web content for wireless devices will be developed on PCs
Information appliances or digital appliances PC appliances will gain a significant share of information appliance market Microprocessors, peripherals and software components
Information appliance building blocks Microprocessors, peripherals and software components Many PC companies will benefit from this trend
Service infrastructure for information appliances PC servers—low-end to high-end products will gain most of this market 10 year potential is 1B+ devices that will need information from servers

source: Etforecast