Spending in India’s PC market has grown significantly in Q1-2025, driven by strong notebook demand and accelerating interest in AI-capable systems.
PC shipments (excluding tablets) rose 13 percent in Q1-2025, reaching 3.3 million units. This growth was propelled by a 21 percent surge in notebook sales, especially in the consumer segment, while desktops continued their decline, according to Canalys (now part of Omdia).
A driver of momentum in the Indian PC space is the rapid uptake of AI-capable notebooks, which saw an impressive 253 percent annual growth in Q1-2025. Though starting from a small base, this spike signals a significant shift in enterprise and consumer buying preferences. Canalys did not reveal the size of the AI-capable notebooks market in India.
Premium notebooks, especially those above $1,000, grew by 49 percent, as both segments increasingly seek high-performance systems suitable for multitasking, content creation, and emerging AI applications, Ashweej Aithal, Senior Analyst at Canalys, said in a research note.
Vendors are capitalizing on this shift with targeted strategies:
Enterprises are leading the AI PC adoption curve, integrating such devices as part of long-term digital transformation and productivity upgrades.
Consumer demand remains strong, supported by festival season offers, expanding offline retail infrastructure, and vendor investments in brand stores and large-format outlets.
PC vendors are also betting on tier-two and tier-three cities, where demand is growing rapidly due to rising digital awareness and aspirations. These markets are now central to OEM strategies, with buyers prioritizing device performance, durability, and support services over just price.
Outlook
Looking ahead, the Indian PC market is forecast to grow 6 percent in 2025, surpassing 15 million units. Growth will be underpinned by:
AI PC mainstreaming across commercial and premium consumer segments.
Increased localization efforts, as the PLI (Production-Linked Incentive) scheme and “Make in India” push encourage more domestic manufacturing.
Rising influence of refresh cycles, particularly in the gaming and premium categories.
Synergies between online and offline channels, enhancing accessibility in semi-urban markets.
Despite a 24 percent YoY drop in overall tablet shipments, the education segment is poised to revive tablet demand by late 2025, as government procurement picks up.
Top PC vendors
HP maintained its top position despite a drop in market share from 31.3 percent to 28.9 percent. Its shipments grew modestly from 923K to 966K units.
Lenovo showed strong growth, increasing shipments from 464K to 626K and gaining market share from 15.7 percent to 18.8 percent.
Acer also grew shipments from 474K to 529K but saw a slight drop in market share from 16.1 percent to 15.8 percent.
Dell recorded only a marginal increase in shipments (from 440K to 445K), leading to a drop in market share from 14.9 percent to 13.3 percent.
Apple was the fastest-growing major vendor, boosting its shipments from 137K to 236K, and its market share rose from 4.6 percent to 7.1 percent.
Others category saw a slight gain in shipments (515K to 535K) but lost market share, falling from 17.4 percent to 16.0 percent.
Lenovo and Apple emerged as the biggest winners in terms of shipment growth and market share gains in Q1 2025, while HP and Dell experienced market share erosion despite higher shipments.
Canalys said 2025 is a transition year for India’s PC industry — setting the stage for broader AI adoption, deeper localization, and a value-focused market expansion that will gain speed in 2026.
Rajani Baburajan
