Acer Dethrones HP to Become No. 1 Desktop Maker in India

Despite experiencing macro-economic challenges in 2011 due to component shortage and fierce price wars among global vendors, Taiwan-based computer manufacturer Acer Inc successfully claimed the number one position in the desktop category in India during the year.

According to data from market research firm IDC, Acer clinched the top spot from Hewlett-Packard, the U.S. hardware giant, with a market share of 13.2 percent in the last quarter of 2011. Indian firm HCL Infosystems stood second with a market share of around 8 percent.

As per IDC data, Acer managed to top the sales chart in the desktop category for nine months in 2011. Though the company tripped down to the second spot during the July-September quarter, it successfully recovered during the last three months of the year.

However, when it comes to the overall PC market in India, including laptops and other mobile computing devices like tablets, it was Dell which outdid others. Acer was at the fourth slot in the list.

According to S Rajendran, Acer's chief marketing officer, large orders the company got from the government was one of the reasons for its increasing sales in the country.

On the other hand, factors that affected HP's performance not only in India but also in global markets were its repeated top-level management changes and recent announcements regarding plans to split off its PC business.

HP's decision to replace its chief executive Leo Apotheker with former eBay chief Meg Whitman made customers cagey, allowing its rivals such as Acer to take the opportunity to gain market share, the Times of India reported.

Though consumers today increasingly prefer mobile computing devices to traditional PCs, India is still considered as profitable market for desktop computers. According to analysts, the country, with a PC-penetration of only about 8 percent, is still in the early stage of computer adoption. Therefore, there is a huge opportunity for multi-national computer manufacturers like Dell, HP, Lenovo and Acer to drive their profit margins up, the report says.

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