Chip shortage hits new brands in tough Indian laptop market, Telecom News, ET Telecom



New Delhi: When popular smartphone brands like Xiaomi and Realme entered the laptop market in India last year, they had to shake up existing giants, especially in the Rs 50,000 category. However, the shortage of chips and the tightening of supply have somewhat shaken their plans to make a meaningful mark to date.

According to industry experts, the problem with smartphone makers falling into the laptop category is twofold.

The first is a massive supply crisis in the laptop component market and only the big brands are able to get the volume and supplies.

The other factor is that the traditional players are very strong in the consumer laptop market. The top 3 players control over 70% of the market and a strong portfolio, distribution and channel reach as well as brand marketing have helped them immensely.

“New brands can certainly make a dent in the consumer laptop market, but are currently facing supply issues. Pay attention to them in 2022 as the supply situation improves, ”Navkendar Singh, research director, Client devices and IPDS, IDC India told IANS.

Dominated by HP Inc, Lenovo and Dell, the traditional PC market (including desktops, laptops and workstations) in India continued to be robust, with shipments increasing by 50.5% in year-on-year second quarter (Q2), according to IDC.

Laptops continue to hold more than three-quarters of the overall category shares and grew 49.9% year-on-year in 2Q21, recording a fourth consecutive quarter with more than 2 million units. Desktop computers also indicated a recovery, with shipments rising 52.3% year-on-year after posting the decade’s weakest shipments in 2Q20.

Driven by the pandemic and the associated accelerated pivot to remote work, learning and relaxation, PCs have seen increased demand, according to Prabhu Ram, Head of Industry Intelligence Group, CMR.

“Despite current supply chain constraints, PCs are here to stay in the new never-before-normal. As the holiday season approaches, established PC market leaders will continue to benefit from visibility of their brand and gain market share, ”Ram told IANS.

“On the other hand, there is a niche market for new market entrants who are able to differentiate themselves from the competition in terms of functionality and value.

“At the same time, they should back it up with a strong brand message to create brand awareness and recall among target consumers,” Ram added.

HP maintained its leadership position in the Indian PC market with a 33.6% share as its shipments grew by 54.2% per year. Dell Technologies continued to hold the second position with a 22.1 percent share and an impressive 86.1 percent year-over-year growth in 2Q21.

Lenovo maintained the third position with a 17.8% share in 2Q21.

Arvind Suraj, a researcher at Jawaharlal Nehru University (JNU), said there is always a trust issue with new brands.

“You won’t buy a laptop in 6 or 7 months like smartphones. In that case, we often go for existing players. Brands like Lenovo, HP, ASUS and Acer have already earned our trust,” he said. -he declares.



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