China’s PC and tablet markets recorded growth in Q1 2025, powered by government subsidies and heightened consumer demand.
In Q1 2025, PC shipments in China reached 8.88 million units, up from 7.95 million in Q1 2024, reflecting a 12 percent year-on-year growth.
According to Canalys (now part of Omdia), PC shipments in China rose 12 percent to 8.9 million units, while tablets surged 19 percent to 8.7 million units. These trends highlight a consumer-driven upgrade cycle and intensified vendor competition, particularly among domestic brands.
Purchase Trends
Consumer demand led the PC market recovery, with notebook shipments rising 20 percent year-on-year. Government incentives played a crucial role, boosting household purchases and accelerating device refreshes. In contrast, commercial demand was subdued, with enterprise PC procurement largely flat. However, the small and medium business (SMB) segment marked a turnaround, posting its first growth in nearly three years, up 2 percent in Q1 2025.
Tablets also benefited from consumer stimulus. Canalys reported continued strength in budget and mid-range segments, with growing interest in higher-spec models for gaming and productivity. Tablet shipments are projected to grow 5 percent in 2025, although a contraction of 8 percent is expected in 2026 as subsidy effects wear off.
Vendor Strategies
Domestic players are reshaping the competitive landscape. Chinese brands such as Huawei, HONOR, Xiaomi, and iSoftStone gained market share at the expense of traditional global vendors like Lenovo, Dell, and HP. Huawei’s introduction of HarmonyOS-based PCs in May signals a strategic pivot to integrate its ecosystem and leverage its mobile device dominance. The company is banking on its AI capabilities and localized innovation to differentiate and gain traction in the PC segment.
In the tablet space, vendors are rapidly diversifying their offerings. To counter growing domestic competition, international brands are introducing high-performance models with OLED displays and improved productivity features. Product innovation, value-based pricing, and alignment with emerging user demands — especially for hybrid work and education — are central to vendor strategies.
PC market vendors
Lenovo remained the market leader with 2.63 million units shipped, though its market share declined from 34 percent to 30 percent.
Huawei maintained its 12 percent share, increasing shipments from 0.96 million to 1.04 million.
iSoftStone saw the most significant growth, more than doubling its shipments from 0.42 million to 0.89 million and boosting its share from 5 percent to 10 percent.
Apple’s shipments rose from 0.48 million to 0.68 million, increasing its market share from 6 percent to 8 percent.
HP experienced a slight decline in both shipments and share, moving from 0.69 million and 9 percent in Q1 2024 to 0.64 million and 7 percent in Q1 2025. The “Others” category grew in volume from 2.67 million to 3.00 million units but remained stable at 34 percent market share.
Outlook
While PC market growth is expected to flatten in 2025, recovery is likely in 2026 with a projected 6 percent increase. The SMB and public sectors are forecast to see incremental gains this year, aided by refreshed IT budgets and government-led PC renewal programs. Vendors will need to navigate declining subsidies and sharpen their focus on differentiated offerings to sustain growth in a maturing market.
Baburajan Kizhakedath
