India shipped a record 5.8 million personal computers, including desktops, laptops and tablets, in the first quarter of calendar year 2022, according to the latest report from the market research firm Canalys, released on Tuesday. The previous record of 5.3 million units was recorded in the third quarter of 2021.
India surpassed the 5 million mark for a third consecutive quarter. The country now accounts for 5% of global PC shipments, up from 3% in the first quarter of 2020.
Analysts attributed the growth to the expansion of local PC manufacturing. Jash Shah, research analyst at Canalys, said: “18% of all PCs sold in India are now manufactured locally. This minimized the impact of events in China on India’s PC supply.
Several PC brands, including HP and Acer, have announced plans to expand local manufacturing over the past year to meet local demand, particularly to qualify for large government contracts that require more than 50% of the devices supplied are made in India. Last November, Acer announced that its laptops would be manufactured at the Dixon factory in Noida, which will produce up to 500,000 Acer laptops per year.
Shah further added that India remains wide open for business while most countries remain in lockdown. “This has helped the economy recover, creating additional demand for PCs and other IT infrastructure.”
According to the Canalys report, total PC shipments in the first quarter increased 48% year over year (YoY). Despite pressure on the global electronics supply chain due to the pandemic and restrictions in China due to rising covid-19 cases, India saw an average growth of 44% in PC shipments over the past six quarters.
Tablets were the fastest growing category with 1.6 million unit shipments growing 69% year-on-year driven by commercial orders, particularly from the government sector.
Laptops grew only 36% year-on-year, but accounted for 3.4 million units shipped in the quarter. With many offices returning to work, the demand for desktop computers has also increased. The Canalys report shows that desktop PC shipments topped 880,000 units with a 64% year-over-year increase.
In terms of overall PC market share, HP was the market leader with 1,449,000 unit shipments accounting for 24.9% of the market share. Chinese brand Lenovo was the second leading brand with 1,122,000 unit shipments and a market share of 19.3%. Acer (10.7%), Dell (10%) and Samsung (7.4%) were the other top 5 vendors.
Shah said India’s PC market will remain strong in the coming quarters, despite the expected slowdown in other global markets.
That said, Shah warned that ongoing inflation will eventually impact PC demand.
“With the Reserve Bank of India raising base lending rates, which are expected to continue rising throughout the year to combat wholesale inflation, indebted businesses will feel the pinch as they have less capital to work,” he added.
As a result, consumers will stop making discretionary purchases, while businesses large and small will freeze budgets and hiring, impacting IT purchases and PC demand.