According to International Data Corporation (IDC), the overall India PC market for calendar Year 2016 stood at 8.58 million units i.e. a year-on-year drop of 15.2 percent over 2015.
The overall market declined initially owing to reduced consumer demand and high inventory in the first half of 2016. However, PC sales recovered starting June owing to strong consumer sentiment backed by seasonality and increased festive demand.
The consumer PC market recorded 4.22 million units in 2016, with a year on year decline of 12.9 percent over 2015.
Manish Yadav, Associate Research Manager, Client Devices, IDC India said, "With high inflation and ongoing fiscal consolidation, consumer sentiment remained frail until H1 2016. However, with subsiding inflation and benefit from the Pay Commission award, continued low commodity prices and measures announced in the Union Budget to transform the rural sector created just the right buzz for PC purchase in CY 2016."
The overall commercial PC market recorded 4.35 million units in 2016, with a year-on-year drop of 17.4 percent over 2015.
"Barring fulfilment of limited large education projects, the year witnessed muted investment and delayed spending from government segment in H2 of CY 2016. Enterprises consumption had been the mainstay in holding up the aggregate demand during the same period." said Yadav.
The report says that HP Inc. recorded a market share of 28.4 percent in the overall India PC market and the vendor took the top spot with 3.0 percentage point growth over 2015, while Dell took the second sport and recorded an overall market share of 23.3 percent and Lenovo held on to the third spot with an overall market share of 17.6 percent.
PC shipment in the fourth quarter stood at 1.92 million units, witnessing a y-o-y drop of 23.6 percent.
"Outside strong festive demand, the quarter did observe impact of demonetization and limited execution of large projects compared to Q4 CY 2015," IDC said.