Local PC production rises as brands push for incentive schemes and government contracts | Job Binary


India shipped a record 5.8 million personal computers, including desktops, notebooks and tablets, in the first quarter of calendar 2022, according to the latest report released by market research firm Canalys on Tuesday. The previous high of 5.3 million units was recorded in the third quarter of 2021.

India has crossed the 5 million mark for the third quarter in a row. The country now accounts for 5% of global PC shipments, up 3% from the first quarter of 2020.

Analysts attributed the growth to the expansion of local computer manufacturing. Jash Shah, research analyst at Canalys said, “18% of all PCs sold in India are now manufactured locally.” This has reduced the impact of Chinese events on Indian computer supply.

Several PC brands, including HP and Acer, announced plans to expand local manufacturing over the past year to meet local demand, especially for large government contracts that require more than 50% of supplied devices to be manufactured in India. Last November, Acer announced that its laptops would be manufactured at Dixon’s Noida factory, which will produce 500,000 Acer laptops a year.

Shah added that India remained largely open for business when most countries were under lockdown. “This helped stimulate the economy, creating additional demand for computers and other IT infrastructure.”

According to the Canalys report, total PC shipments in the first quarter grew by 48% year-over-year (YoY). Despite pressure on the global electronics supply chain due to the pandemic and restrictions due to rising covid-19 cases in China, India has seen an average 44% growth in PC shipments over the past six quarters.

Tablets were the fastest-growing category, with 1.6 million unit shipments up 69% year-over-year on the back of commercial orders, primarily from the government sector.

Notebooks only grew 36% year-over-year, but during the quarter they had 3.4 million unit shipments. As many offices have returned to work, the demand for desktops has also increased. Canalys’ report shows that desktop shipments exceeded 880,000 units, an increase of 64%.

In terms of overall PC market share, HP was the market leader with 1,449,000 unit shipments, accounting for 24.9% of the market share. Chinese brand Lenovo was the second leading brand with 1,122,000 unit shipments and 19.3% market share. Acer (10.7%), Dell (10%) and Samsung (7.4%) were the other top sellers in the top 5.

Shah said the Indian PC market will remain strong in the coming quarters, despite a slowdown expected in other global markets.

That said, Shah warned that continued inflation will impact PC demand.

“As the Reserve Bank of India raises key lending rates to combat wholesale inflation that is expected to continue rising throughout the year, indebted companies will feel the pinch as they have less capital to work with,” he added.

As a result, consumers will stop making discretionary purchases, and businesses, large and small, will freeze budgets and hiring, which will affect IT purchases and PC demand.

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