Reseller News

Dell dislodges HP in India for first place in PC market

The country’s PC market grew by 34 percent in the second quarter, IDC India said

Dell took the number one slot for the first time in the Indian PC market from Hewlett-Packard in the second quarter, on account of strong marketing and a solid base of channel partners, research firm IDC India said on Wednesday.

HP has held the number one position in the Indian PC market every quarter since 2005, according to IDC India data.

Dell did well across all market segments in the second quarter, including consumer, commercial, and small and medium businesses, said Sumanta Mukherjee, lead PC analyst at IDC India, in an interview.

Dell may have also been helped by disruptions in HP’s consumer business as HP moved from a national distribution model to a network of regional distributors, said Mukherjee. HP has been traditionally strong in the consumer market, he added.

As a result, Dell had a 15.2 percent share of the PC market followed by HP at 14.3 percent and Acer at 11.5 percent. Dell’s top position came primarily from increased sales of its notebook PCs, including consumer notebook sales. It had a 29 percent share of overall notebook PC sales in the quarter.

In the April-June quarter last year, HP held the top spot in the Indian PC market with a market share of 17.8 percent, followed by HCL Infosystems, an Indian vendor, and Dell.

HP was not immediately available for comment on the IDC figures.

Both Dell and HP have identified India as a key market, and also set up local manufacturing facilities.

HP however held its number one position in desktops in the second quarter with a 10.2 percent share, followed by HCL Infosystems, and Acer. Dell did not focus enough on the consumer desktop, and is expected to do so in the next quarters, Mukherjee said.

IDC India’s figures for the second quarter also reflect a strong turnaround for the PC market in India, Mukherjee said. PC market sales in the country touched 2.4 million during the April-June 2010 quarter, up by 34 percent from the same quarter last year.

Government spending and improved buying by consumers and small and medium businesses aided the recovery of the PC market last year. With large businesses also now buying, the PC market in India is set to grow by about 20 percent by units this year, Mukherjee said. Demand from large businesses, including the IT and business process outsourcing industries, had been slow to pick up because these companies were more exposed to the global recession, he added.

Desktop shipments were still the largest by form factor at 1.6 million, posting a growth of 24 percent in the second quarter. Notebook shipments grew 61 percent to 805,000 units.