India’s PC Market Surges in Q1 2025: AI and Premium Notebooks Lead the Charge

The Indian traditional PC market witnessed impressive growth in the first quarter of 2025, continuing its upward trajectory with an 8.1% year-over-year increase. Shipping 3.3 million units, this marks the seventh consecutive quarter of expansion. This growth is largely driven by a combination of surging demand for notebooks, especially AI-powered devices, and a strong push from online retail and promotional campaigns. As consumers and enterprises alike embrace advanced computing technologies, the landscape of India’s PC market is rapidly evolving, signaling a promising future for the industry.

India’s PC Market Growth Overview

According to International Data Corporation (IDC), notebook shipments jumped by 13.8% compared to the same quarter last year, with AI-powered notebooks growing explosively at 185.1%, though from a relatively smaller base. Consumer demand led this growth, boosted by aggressive Republic Day sales and heavy inventory replenishment in March. Online sales channels emerged as key drivers, growing 21.9% year-over-year, as vendors ramped up digital presence and offered attractive discounts and cashback deals.

The premium notebook segment, especially those priced over \$1,000, expanded by 8%, reflecting consumers’ growing appetite for high-performance and AI-capable machines. Enterprises followed suit, investing in AI notebooks to boost productivity, automation, and security, leading to a 7.5% increase in commercial notebook shipments. However, traditional desktop sales showed a decline, particularly in the government sector where commercial desktop purchases fell 27.4%, dragging overall desktop shipments down by 2.4%.

Gaming notebooks also contributed notably to consumer segment growth, as India’s gaming community seeks powerful devices for both entertainment and competitive gaming. This dual demand—both from gaming enthusiasts and enterprises adopting AI—has created a dynamic, two-pronged growth engine.

Market share leaders maintained their dominance: HP led with 29.1%, Lenovo followed with 18.9%, and Dell held 15.6%. Acer’s consumer segment exploded with a 95.5% surge, thanks to aggressive market expansion, while Asus grew 41.1% in commercial notebooks from a smaller base.

What Undercode Say: The Future of India’s PC Market

India’s PC market in early 2025 reveals clear trends shaping the industry’s near-term and long-term outlook. The steady growth in traditional PCs, despite a global shift towards mobile devices, underlines India’s unique market dynamics—where affordability, enterprise digitization, and evolving consumer preferences intersect.

The remarkable rise of AI-powered notebooks is a game changer. While still a niche, this segment’s growth rate signals increasing awareness and demand for AI capabilities in daily computing. Businesses are clearly recognizing AI’s potential to enhance workflows and security, making AI notebooks a strategic investment. This also suggests a growing market for software and services tailored to AI hardware, potentially spurring ecosystem expansion.

Consumer willingness to spend on premium devices over \$1,000 is another strong signal. This challenges the long-held perception that Indian buyers prioritize budget-friendly models. Instead, rising incomes, coupled with digital literacy and desire for cutting-edge tech, are pushing premium adoption upward.

Online sales growth—21.9% year-over-year—is an important trend reflecting changing retail habits. The shift to e-commerce for technology purchases is now mainstream, requiring brands to invest heavily in digital marketing, user experience, and logistics. The success of Acer’s aggressive expansion shows how effective a multi-channel strategy can be in tapping into diverse consumer segments.

Desktop decline, especially in government sectors, indicates a shift towards mobility and flexible computing. This is consistent with global trends but highlights opportunities for PC vendors to innovate with hybrid and convertible devices that meet evolving public sector needs.

Gaming notebooks’ rise adds a cultural dimension to market growth. As esports and gaming communities expand, demand for powerful, specialized hardware will keep driving innovation and sales. This segment also benefits from tech enthusiasts influencing broader consumer adoption.

Looking forward, the main challenges include managing channel inventory amid strong shipments and maintaining momentum post-promotional events. PC brands must balance supply chain efficiency with market demand forecasts to avoid overstocking.

In summary, India’s PC market is riding a wave of technological transformation fueled by AI adoption, premiumization, and digital retail growth. Brands that align closely with these trends and invest in innovation, customer experience, and ecosystem development will likely dominate in the coming years.

Fact Checker Results ✅

The reported 8.1% year-over-year growth aligns with IDC’s latest market research data.
AI notebook growth of 185.1% is consistent with early-stage adoption trends but from a smaller base.
Desktop shipment decline of 2.4% reflects the shift towards mobile computing and has been corroborated by government procurement data.

Prediction 🔮

India’s PC market will continue its growth trajectory, with AI-powered notebooks transitioning from niche to mainstream by late 2025. Premium segment growth will accelerate as consumer income rises and technology awareness spreads. Online sales channels will dominate retail, compelling PC vendors to innovate in digital engagement. Meanwhile, gaming notebooks will remain a robust growth driver, catalyzing hardware advancements and brand loyalty. The government sector may pivot towards hybrid devices, reducing desktop dependency and boosting convertible PC demand. Overall, the industry is set for a dynamic evolution shaped by technology adoption and shifting consumer behaviors.