India's PC Market Declines 6.6% in 2023 to 13.9M Units

CIOTechOutlook Team | Tuesday, 19 November 2024, 05:15 IST

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According to IDC India, there was a 6.6% drop in India's personal computer market (including desktops, notebooks, and workstations) to 13.9 million units in 2023. During the first quarter of 2024, the market experienced a 2.6% year-on-year growth, followed by a 7.1% growth in the second quarter. IDC India reported that Lenovo India held the second position in market share in the April-June quarter at 17.5%, following HP with 31.7%.

Lenovo India, a Chinese computer manufacturer, experienced a decline in sales and net profit for the second year in a row in FY24 due to the slowdown in the country's computer market after the peak of Covid-19. As per the company's submission to the Registrar of Companies, the total revenue of the company decreased by 14% to ?10,847 crore compared to the previous year, while the net profit dropped by 3% to ?100 crore. In FY23, the company experienced a 12% decrease in sales, with net profit showing an even steeper decline of 45%.

Lenovo India stated in its most recent report that it showed strength despite economic uncertainty, supply chain disruptions, and inflationary pressures. There were no explanations provided for the financial performance. Inquiries sent via email to the company were left unaddressed.

"There has been a significant improvement in cash position-more than doubling to ?1,091 crore-suggesting Lenovo India is building reserves amid market uncertainties. However, the rising trade payables by over 50% to ?2,428 crore warrant attention as it could indicate stretched working capital management," said Yadav.

Lenovo India's profit levels saw a slight decrease in FY24 due to cost optimization, according to Mohit Yadav, an analyst and the founder of business intelligence firm AltInfo.

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