As reported on November 11, 2020, data from research agency, International Data Corporation (IDC), the demand for personal computers (PCs) in India has registered strong growth, 9.2 per cent, in the July-September quarter of 2020 due to increased ‘work from home’ requirements and online learning at schools. The largest growth of last 28 quarters saw 3.4 million units shipped during the quarter, growing 41.7 per cent year-on-year, and 167.2 per cent from the previous quarter; contributed to the enterprise segment at marginally 3.1 per cent year-on-year. Schools and colleges continued to function virtually, giving rise to demand for consumer notebooks, especially in large cities. Desktops, notebooks, and workstations, etc., are classified as personal computing devices by IDC.
The top position in the overall PC market was secured by HP with a share of 28.2 per cent in the September quarter of 2020, besides recording a strong quarter in both consumer and commercial segments, with a 16.6 per cent increase in shipments, compared to the year-ago period. Lenovo reported a 27 per cent yearly growth in the consumer segment and remained a little ahead of Dell with a 21.7 per cent share in its overall shipments. So far as Apple is concerned, its shipments also grew 19.4 per cent (its biggest quarter of shipments in the country). Therefore, the company has stepped up its efforts in India by launching an online store, which has a full range of products and provides support directly to customers across the country.
As per Amazon India, search for products increased, such as search for headphones and earphones increased 1.7 times; search for laptops and tablets doubled; for stationery about 1.2 times; for mouse and keyboards over 2 times; for printer 1.3 times; for routers over 3 times; and for study tables 2.5 times.
According to Flipkart, demand for gaming laptops and core i3 laptops grew significantly in states like Maharashtra, Delhi, and Karnataka. As per Arnold Su, business head, Consumer & Gaming PC, System Business Group, ASUS, India, initially the company had forecast a considerable impact on the overall laptop business in India by 30-40 per cent in Q2 2020 compared with Q2 2019. But witnessing a ‘dramatic surge in demand for laptops in mid-May onwards,’ they now believe that the drop may minimise to 10 per cent–20 per cent.
Managing director, Cerebra Integrated Technologies which offers enterprise level device management and device refurbishment services, V Ranganathan views that there has been a 100 per cent jump in demand for refurbished PCs and laptops from corporates with factors such as cost effectiveness, as you are paying about 1/10th of the cost of the (new) device, and scalability by procuring for a short period, driving this demand. Though the overall PC market is not expected to expand immediately, it will eventually happen as more companies and small business will go digital.
OnLine Educational Scenario Post-Covid-19
We see many changes in the dynamics of education post-Covid-19. Since students are getting connected remotely, everything has changed in the ecosystem. The demand is expected to be strong as PC penetration still continues. Besides, the demand for notebook PCs remains much higher than the current supply, and is expected to spill over in the future. The pandemic is still on without any certainty over when and to what extent schools and colleges will resume physical classrooms; till then, virtual learning will continue.
Therefore, students are forced to manage their learning virtually. The demand will stay strong as long as India remains underpenetrated in PCs. Additionally, the growing broadband connectivity in the country is making online learning easier for students. Hence, PC vendors are expected to enjoy a good sale for at least a few more quarters.
Courtesy: Business Line, Live Mint