The advancement of AI technology and the upcoming end of support for Windows 10 OS have spurred Indian companies, both small and large, to upgrade their outdated hardware. This trend has led to a surge in demand for personal computers across the country.
According to data released by market researcher International Data Corporation, commercial sales of laptops, desktops, and tablets in India (excluding government contracts) witnessed a nearly 4% year-on-year increase in the June quarter. This growth is the most significant jump in demand from enterprises since June 2022, outpacing the 1% increase seen in the previous quarter.
The increase in demand is attributed to a variety of factors, including the demand from global capability centers and the expected revival of India’s $250-billion IT industry. Even Apple experienced a 65% surge in revenue from selling Macs due to enterprise deals. Overall PC sales in India saw a 7% year-on-year increase to 3.39 million units during the same period.
Analyst Ashweej Aithal noted, “Enterprises are upgrading their PCs to comply with a compulsory software upgrade cycle for Windows PCs and due to increasing demand driven by tech projects and digital transformation. Moreover, there is an anticipated need for PCs that support AI applications in the coming quarters, further boosting demand.”
Companies are the primary drivers of demand for original equipment manufacturers. Acer India, for example, relies heavily on corporate clients for revenue while also aiming to expand its reach in the consumer market.
Harish Kohli, President and Managing Director for Acer India, mentioned, “As of today, we have over 7.5 million IT assets under direct maintenance and warranty of Acer India. Our enterprise sales currently contribute 55% of the annual revenue.”
PC Sales
Acer’s India sales have risen by nearly 35% in the first half of this year, showcasing strong demand from enterprises for India’s fourth-largest laptop brand. HP, India’s largest PC company, sees the ongoing refresh cycle as an opportunity to expand sales among businesses.
Ipsita Dasgupta, Senior Vice President and Managing Director of HP India, stated, “The PC could be pivotal in driving technological changes across various industries, especially in the current economic landscape.”
Two enterprise channel retailers corroborated the resurgence in shipments, attributing it to the anticipation of greater AI features and the end of support for Windows 10. Apple has been a significant beneficiary in recent quarters, posing a challenge to Windows-powered PCs.
While hardcore AI use cases are yet to become mainstream in India, there is a strong sentiment among enterprises to upgrade their IT hardware, which bodes well for PC brands, as per Canalys’ Aithal.
Although Apple is growing rapidly, its enterprise market share is limited due to the pricing disparity with Windows brands. The enterprise category will continue to be driven by high-value Windows products in India.
With an increasing number of global captive centers being set up in India and a potential recovery in the IT sector, higher shipments to enterprises signify a positive outlook for PC brands in the country.
Analyst Omkar Tanksale highlighted, “There is a cyclical upgrade cycle looming, and macroeconomic conditions suggest a revival in the IT services industry. This optimism reflects in the anticipation of higher sales by volume and value for PC brands in India this year.”
