New Delhi: Artificial intelligence and the end of support for the Windows 10 operating system are prompting Indian businesses, small and large, to upgrade their outdated hardware, boosting demand for personal computers.
Commercial sales of laptops, desktops and tablets (excluding government contracts) rose nearly 4% year-over-year in the June quarter, according to data released Monday by market research firm International Data Corporation. It was the largest increase in business demand since June 2022, outpacing 1% growth in the three months ending in March.
According to analysts and retailers, the recovery after a two-year lull also reflects rising demand from global capacity centres and an expected revival of India’s $250 billion IT industry. Even Apple saw a 65% increase in the money it makes from selling its products. Mac between April and June in business agreements, Mint It was reported on August 3 that total PC shipments in India increased 7% year-on-year to 3.39 million units during the period.
“Businesses are upgrading their PCs to meet a mandatory software upgrade cycle for Windows PCs, in addition to increasing demand based on revival of technology projects and digital transformation,” said Ashweej Aithal, an analyst at market research firm Canalys. For small and large businesses, he said, the anticipated need for PCs that support AI applications in the next four quarters has also started to drive demand.
Enterprises dominate demand for OEMs. For Acer India, corporate customers contribute the bulk of revenue, even as the company looks to increase its presence in the consumer market.
“We currently have over 7.5 million IT assets under direct service and warranty from Acer India,” said Harish Kohli, President and Managing Director, India, Acer. “Our enterprise sales account for 55% of our annual revenue today, and we have a strong trust factor that allows us to have top-tier options in the banking and financial services space, one of the largest demand drivers for technology in India.”
PC Sales
Acer’s sales in India rose nearly 35% in the first half of this year, demonstrating strong corporate demand for India’s fourth-largest laptop brand.
HP, India’s largest PC company, sees this upgrade cycle driven by disruptive technological changes as an opportunity to expand its sales among enterprises.
“We are thinking about job creation, but if we talk about numbers, in terms of the economy, SMEs (small and medium enterprises) and other growing industries, many of them are rethinking the way we do everything,” said Ipsita Dasgupta, senior vice president and general manager, HP India. “The PC could be central to all of this.”
Two enterprise channel retailers confirmed a resurgence in shipments in anticipation of increased AI features and the end of support for Windows 10. “Apple is the biggest beneficiary in this regard, which represents a tough challenge for Windows PC vendors over the past two quarters,” one of the retailers said.
According to Canalys’ Aithal, enterprises are yet to see high-end AI use cases and Microsoft’s ‘Copilot-Plus’ AI systems are yet to impact the Indian market. “But there is a clear sentiment that enterprises need to be more resilient when it comes to upgrading their IT hardware, which bodes well for PC brands.”
But he doesn’t expect Apple to benefit much, even though it is growing at the fastest pace on a low base. “The price gap between Apple PCs and Windows brands has been minimized, but Apple will have a hard time breaking into the enterprise category, where high-value Windows products will continue to drive the market,” he said. “While we expect a high-single-digit pickup in enterprise PC demand going forward, this will help PC brands in India in the long run.”
The rise in shipments to businesses also reflects demand from an increasing number of global captive centres being set up in India, as well as a potential IT recovery. While the sector, except for the leader Tata Consulting ServicesAccording to a gloomy June report, CEOs of India’s top four IT companies expect tech dealmaking to pick up.
“Brands will only be able to postpone digital transformation and technological upgradation for a limited time,” said Omkar Tanksale, senior equity analyst at Axis Securities. Mint last month. “After a certain point, a cyclical upgrading cycle will set in and macroeconomic headwinds appear to have bottomed out, suggesting that the IT services industry will recover in the remainder of the fiscal year.”
It’s no surprise that PC brands are anticipating higher sales in volume and value this year.
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