The Indian PC market, including desktops, notebooks, and tablets, saw a downturn in the third quarter of 2022, with shipments falling 4% year on year to 5.1 million units. According to research firm Canalys, notebook shipments were the main contributor to the overall market decline, falling sharply by 21%. However, desktop and tablet shipments saw significant annual growth, with 36% and 24% increases to 766,000 units and 1.5 million units respectively.

Weak Demand from Commercial and Consumer Sectors Affects Indian PC Market

One bright spot for the Indian PC market was the education sector, which saw a surge in shipments due to the release of public sector tenders that had been postponed in the previous two years. This led to a 181% increase in shipments across all product categories in the third quarter. The segment is expected to continue to be a strong performer, particularly for tablets, which are a key part of India’s digital education expansion strategy.

Vendor Q3 2022 shipments Q3 2022 
market share 		Q3 2021 
shipments 		Q3 2021 
market share 		Annual 
growth 
Lenovo  1,095 21.6%  1,429  27.0% -23.4% 
HP  940  18.5%  1,268  24.0% -25.9% 
Acer  532  10.5%  398  7.5% 33.7% 
Apple  456  9.0%  283  5.3% 61.1% 
Dell  455  9.0%  726  13.7% -37.3% 
Others  1,593  31.4%  1,187  22.4% 34.2% 
Grand Total  5,071  100.0%  5,292  100.0% -4.2% 

Canalys PC Market Pulse: Q3 2022 

On the commercial side, however, demand for PCs was weaker due to businesses reprioritizing IT spending in the face of an uncertain economic climate. Shipments to the commercial segment fell 11% compared to the same period in the previous year, as both enterprises and small and medium-sized businesses saw weaker demand due to inflation and interest rate hikes by the Reserve Bank of India.

On the consumer side, demand for PCs was also relatively weak during the festive season, with household spending declining significantly after a surge in the second quarter. Despite promotional activity by vendors and retailers, consumer shipments fell 12% year on year as inventory clearance remained an issue.

The return to in-person education also reduced the need for devices to support remote learning, leading to sluggish consumer demand that is expected to continue into the beginning of 2023. The weakening rupee is also putting additional upward pressure on prices. In terms of market share, HP was the top vendor in the third quarter of 2022, with 26.5% of shipments, followed by Lenovo with 23.6% and Dell with 12.8%. Acer and Asus also had significant market share, with 12.7% and 10.7% respectively.

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