A new report published by research firm, International Data Corporation or IDC further solidifies rumors that Lenovo has beaten Samsung for the first time to hold the biggest market share in tablet sales. Lenovo had a margin of 21.8 percent in the tablets market compared to Samsung's 20.6 percent. The numbers are for 2017 Q2.
Rahul Agarwal, CEO and MD Lenovo India, expressed his gratitude for the relentless support showed by the consumers, without whom the feat would never have been possible. He hopes for continued growth in numbers into Q3 too. He attributes Lenovo's strong foothold in various sectors to have helped them in becoming the tablet segment leader.
The IDC report states that Q2 of 2017 did a business of 722 thousand tablets, which was a marginal 2.9 percent growth over Q1, 2017. This growth was primarily funded by the healthy growth in the commercial segment.
Shipment numbers in the consumer segment draw a contrasting picture, as they saw a decline of over 13.8 percent quarter on quarter (QoQ) in Q2, 2017. This resulted in a sharp fall of 26.8 percent year on year (YoY).
Celso Gomes, Associate Market Analyst, Client Devices IDC, states that the consumer segment growth was primarily inhibited due to the implementation of the Goods and Services Tax (GST – tax reform) in India. The uncertainty in new tax structure restricted the stocking of inventory and this is turn led to limited sell in of tablets.
The PC shipment in India was declined significantly in the quarter end of June 2017. The numbers were close to 18% lesser. Low demand was majorly observed in the consumer segment in comparison to the commercial PC sector.
In Q2, the consumer segment witnessed a shipment decline of 22.7 percent while the commercial PC segment declined by 13.4% over the previous quarter.
Government a Growth Driver
The different digitisation projects taken up by the government and the Education sector are routed to be the main growth driving factors in the commercial segment. The vendors are re-arranging their portfolios and changing focus to target this to ascertain their relevance in this sector.
Samsung even though lost the crown to Lenovo has still managed to keep the volumes strong by maintaining their shipment numbers even last quarter. Datawind dropped to the third position after its market size contracted 2 percent and it's shipments saw a decline of 9.4 percent.
iBall took position number four in the ranks with the shipments seeing a decline of over 9 percent sequentially in Q2, 2017. Apple rounds up the top-five in this category with an extremely healthy 49.6 percent quarter on quarter (QoQ) growth, but a big 17.3 year on year (YoY) decline.
Consumer segment Outlook
The consumer segment looks poised to grow finally after two quarters of poor performance as the market is preparing itself up for the upcoming festive season.
Vendors will still continue to focus on the commercial side of deals to help with the purported digitization of the country.