India's PCs shipment declines by 15% YoY: Canalys

"The education sector suffered a notable 23% drop, mainly due to delayed tablet deployments,' said Canalys analyst Ashweej Aithal.
Image used for representational purpose only.
Image used for representational purpose only.

NEW DELHI: India's shipments of PCs, including desktops, notebooks, and tablets, declined by 15% year-on-year in Q2 2023, according to research firm Canalys.

Notebook shipments fell by 12% to 2.3 million units, while desktops dropped by 17% to 764000 units. Tablet shipments suffered the largest decline, down 22% to 873000 units. However, the PC market (excluding tablets) saw a promising 2% sequential growth, reigniting optimism within the industry.

"The education sector suffered a notable 23% drop, mainly due to delayed tablet deployments,' said Canalys analyst Ashweej Aithal.

According to the firm's latest forecast for the Indian PC market (including tablets), shipments are expected to fall by 9% in 2023. However, there is optimism for a bounce back in 2024 and 2025, with shipments in both years expected to grow robustly by 15% year-on-year. This growth is expected to be widespread across all categories and end-user segments. The fundamentals around PC use and adoption in India remain strong, and Canalys expects the shipment peak achieved in 2022 to be surpassed.

The firm also noted that the Indian government's recent imposition of import restrictions on desktops, notebooks and tablets is set to disrupt the market, particularly foreign vendors, according to a research firm Canalys. This disruption is anticipated to intensify toward the end of 2023, with restrictions slated to commence in November.

"The Indian government's recent imposition of import restrictions on desktops, notebooks and tablets is set to disrupt the market, particularly affecting major foreign vendors that have yet to initiate local manufacturing," said Canalys Analyst Ashweej Aithal.

He further added that consequently vendors are set to aggressively push inventory in both the consumer and commercial segments. In response to the impending scarcity of devices, there may also be an uptick in rapid deal closures. Vendors could face the need for additional import licenses, but the government is expediting the licensing process to mitigate price surges caused by the anticipated scarcity.

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