New Delhi: The personal computer (PC) market in India continued to shrink in the second quarter of 2015-16 due to subdued demand from enterprises, said research firm Gartner Inc. on Tuesday.

Personal computing devices which includes desktops, laptops and tablets totalled nearly 2.2 million units in the second quarter, saw a 13% drop from the corresponding period last year.

“Consumers accounted for 48% of total PC sales in the second quarter of 2015," said Vishal Tripathi, research director at Gartner. “In the absence of any substantial demand from enterprises this quarter, the Indian PC market performed dismally, re-emphasizing the fact that sentiments were not very positive in the second quarter of 2015. The enterprise segment might witness some growth going forward due to government and education projects, however there might not be a significant bounce back."

PC vendors such as Lenovo, HP and Dell failed to entice consumers with the new offerings as the market witnessed “a deeper slack in consumer demand". Mobile PC market declined 18% year-on-year. The trend reflects the global PC market, which has continued to free fall since last year. In the first quarter of 2015, Gartner and International Data Corp. (IDC) said the overall global PC market fell at least 5% as compared to a year-ago period.

Hewlett-Packard Co. (HP) maintained the top position in the India PC market, despite a decline in its market share, which dropped to 26.3% in the second quarter from 29.4% from a year-ago period. While Dell Inc. clung to its position as the second largest PC maker in the country, Lenovo Corp., which saw the biggest increase in market share, growing from 14% last year to 18% this quarter, remained the third largest PC vendor.

Even as the top PC vendors continue to be optimistic about the segment, numbers from various research firms paint a contrary picture. In 2014, the total India PC shipments stood at 9.6 million units, down 16.5% year on year from 2013, as per the data released by IDC.

However, IDC estimates the overall PC market to witness growth in 2015 over 2014 driven by the demand from Indian government and government aided projects.

The government’s Digital India program aims to improve digital infrastructure and online delivery of government services in the country while running large scale programs to make people at the bottom of the pyramid digitally literate.

“Special education projects and improved business sentiments in the enterprise business will continue to drive commercial PC volumes in CY 2015," market research firm IDC said in a report earlier this year. “Government and government aided education buying will hold the key to growth in the commercial PC business."

“On the consumer business, opportunity is ripe for vendors to drive penetration and improve overall business," it added.

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