[Techtaffy Newsdesk]

PC Growth in India is gradually percolating into upcountry markets i.e. Tier 2 and Tier 3 cities, says IDC. ‘Commoditization is driving growth into semi-urban markets, which are showing much faster growth in terms of increased purchasing power, increased awareness level of products and the desire to improve living standards’ comments Kanwar Rahul, Research Manager, IDC India.

Per IDC estimates, South India holds the top place in the India PC market in Q4 CY 2011. Karnataka remains the highest contributor within the region. ‘South India typically boasts a few big names in the enterprise market, who continue to be top spenders in IT products. Further, the region continues to be a stronghold for non-branded PC market in India’ adds Kiran Kumar, Senior Market Analyst, IDC.

North region takes the 2nd place in the India PC market. Delhi remains the largest state (shipments) followed by Uttar Pradesh. And West region slipped to the 3rd place in the India PC market in Q4 CY 2011.

However, Maharashtra remains the single largest state in the country with roughly 17.4% share (shipments) and with a substantial share of about 63.3% within the West region in Q4 CY 2011.

On the performance of the overall market for the corresponding period, IDC adds that the PC market recorded its lowest shipments in the last six quarters, disrupted largely by the supply shortage and subsequent price inflation of the Hard disk drives. Further the demand is expected to be subdued in the coming months due to the price hike impacted by factors such as volatile rupee and hard disk shortage. A recent budget announcement around tax hike (higher excise) is only expected to further drive the prices upwards.

The top vendors in PC market were identified to be Dell, followed by Lenovo and HP in Q4 CY 2011. While Maharashtra remained the largest contributor for Dell and HP, Karnataka was noted to be the top performing state for Lenovo in Q4 CY 2011.

HP, a market leader till CY 2010, has increasingly lost share in CY 2011 because of its announcement of a PSG spin-off, which ended up in creating an uncertainty amongst its channel partners. HP is also battling against aggressive pricing from competitors and deal with weak consumer PC demand. Even as HP’s new CEO Meg Whitman, cleared up some confusion about its PC business to stay over, the much awaited prediction of HP’s IPG and PSG has finally been reaped as the breaking news of the day. This will help HP build synergies in its operations. With this the new entity, HP will have the biggest channel presence in India, which will help boost their reach and sales.