India PC shipments ’23 set for double-digit decline in analysts

Indian shipments of laptops and desktops are expected to decline by 13.4% this calendar year, to 12.4 million units from 14.4 million units last year, according to data shared by Gartner. Even though the second half of the year should be better for PC companies, analysts say it’s unlikely to replicate the sales growth seen over the past two years anytime soon.

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Analysts said the weak performance was driven by a fall in demand due to inflation, which is expected to continue this year as well. PC makers are also likely to adjust unsold stock due to the ongoing lack of demand.

“The first half of 2023 is expected to remain weak as inventories reduced and then recover in the second half as inventories are cleared and orders are flowing. As you may have noticed, the first quarter of 2023 was down 30% worldwide, and India did not escape it, but fared better than elsewhere,” said Ranjit Atwal, senior director analyst at Gartner.

Navkendar Singh, Associate Vice President, IDC India, also said that PC shipments in India are set to decline this year. A February report by IDC said total shipments of desktops, notebooks and workstations in India grew only 0.3% year-on-year (YoY) in 2022, despite a decline of 28.5% in Q4 2022.

Singh attributed market forecasts for high inflation, recession fears and overall caution about spending both among consumers and enterprises as weak. “Additionally, with the reopening of offices and schools, demand has softened and/or is being postponed,” he added.

That said, Singh believes that the Indian market may resume in the second half of the year. “But that still won’t be anywhere near the level of the last 2 years.”

Gartner forecasts PC shipments for double-digit growth of 13.8% in 2024.

This year’s weakness will be followed by two years of strong growth in PC sales after the Covid outbreak forced a shift towards remote working and learning.

According to IDC data from that year, India exported a record high 14.8 million PCs, including desktops, laptops and workstations, in 2021 at an annual growth rate of 44.5%.

“The PC market is still growing in India, with new users coming on the consumer side and digitization of business creating new demand on the business side. Gaming should become a driver as more users move to larger-screen PCs for a more immersive experience,” said Gartner’s Atwal.