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The Growing Attractiveness of the Indian Personal Computer Market

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The Indian personal computer (PC) market was dominated by local assemblers. However, recent trends indicated that the branded PC makers were fast gaining ground with aggressive pricing and localized strategies. In 2007, the PC market in India grew by 20 percent to reach around 6.5 million units, according to IDC1.2 Though the market was small compared to the overall PC market, which stood at 271.2 million units (a growth of 13.4 percent compared to 2006), analysts believed that future growth in the global PC market would be spurred by emerging markets such as India.

While the global PC market was dominated by companies such as Hewlett-Packard Company3 (HP), Dell Inc.4 (Dell), Acer Inc.5 (Acer), the Lenovo Group Limited6 (Lenovo), and Toshiba Corporation7 (Toshiba) with market shares of 18.2 percent, 14.3 percent, 8.9 percent, 7.4 percent, and 4 percent respectively in terms of units, the situation in India was somewhat different.8

In India, the top three players were HP, HCL Infosystems Ltd9 (HCL), and Lenovo with a market share of 21 percent, 13 percent, and 10 percent respectively.10

The growth in India was spurred by an increase in the consumer demand for notebooks, which accounted for 27 percent of PC shipments in 2007. Notebook shipments grew by around 84 percent in the year to touch 1.8 million units.

Kapil Dev Singh, country manager, IDC India, said, "In CY 2007, notebook PC shipments accounted for over a fourth of the total client PC shipments. This healthy trend points to the maturing of the Indian IT market and a shift to a new phase of growth - Growth Phase 2.0,"11

In the fast growing notebook market, HP led the pack with a 37 percent market share followed by Lenovo and Acer with market shares of 16 percent and 10 percent respectively.12 Notably, unbranded PC makers did not have a significant presence in notebooks.


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1] IDC, based in Massachussetts, USA, is a market research and analysis firm specializing in information technology, telecommunications, and consumer technology markets.

2] John Rebeiro, "HP Holds Top Spot in Indian PC Market," www.infoworld.com, February 27, 2008.

3] Hewlett-Packard Company, headquartered in Palo Alto, California, USA, is one of the leading manufacturers of PCs, printers, network management software, servers, etc. For the fiscal year 2007, its revenue was US$104,286 million. (Source: www.finance.google.com).

4] Dell Inc., headquartered in Round Rock, Texas, USA, was the second largest PC marker in the world. Its revenue in 2006 was US$55.9 billion.

5] Acer Inc. is headquartered in Taipei, Taiwan. It had revenues of US$11.1 billion and net income of US$338 million in 2006. In addition to PCs, its product portfolio also includes personal digital assistants (PDAs), servers and storage, displays, peripherals, and e-business solutions for business, government, education, and home users.

6] Lenovo Group Limited is headquartered in Beijing, China. Its revenue for 2007 was US$14.6 billion. In addition to PCs its product portfolio also includes PDAs, servers, imaging equipment, and mobile phone handsets.

7] Toshiba Corporation is headquartered in Tokyo, Japan. Its revenue for 2007 was US$63.7 billion. In addition to PCs, it also manufactures other digital products, electronic devices & components, home appliances, etc.

8] Bogdan Botezatu, "HP Steps on Dell's Neck as Worldwide PC Shipments Reach 270 Million," www.news.softpedia.com, February 7, 2008.

9] HCL Infosystems Ltd, headquartered in Noida India, is a hardware and systems integrator. Its revenue for the year March 31, 2007, was US$ 2.6 billion. It is a subsidiary of India's leading electronics, computing and information technology (IT) company, HCL Enterprises.

10] "India's Computer Market Sees 20% Year-on-Year Growth," www.economictimes.indiatimes.com, February 27, 2008.

11] "PC Output up 20%, Crosses 6.5 mn Mark in 2007," www.economictimes.indiatimes.com,
February 28, 2008.

12] "India's Computer Market Sees 20% Year-on-Year Growth," www.economictimes.indiatimes.com, February 27, 2008.


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