Mint Explainer | Why computers, laptops and tablets are selling like hot cakes again
Sales of laptops, desktops and tablets have suffered greatly in India after the pandemic broke out. However, after some recovery in 2024, laptop and tablet manufacturers started to do brisk business again. Shipments of all personal computers (PCs) reached a record 4.9 million units in the quarter ending in September, according to research firm IDC.
What caused the comeback and which companies will benefit from this increase? Mint explains.
How did computer sales fare in India this year?
Extremely good. According to IDC, all three types of personal computers (desktops, laptops and office workstations — rose 10 to 14 percent year over year in the quarter ending in September, as shipments reached a record high. Much of this growth came from small and medium-sized businesses and large offices replacing older computers.
Regular shoppers also bought computers, and shipments reached a record high of 2.8 million units last quarter. While students waited for holiday sales to buy new devices, laptops made up the bulk of these consumer sales.
Were sales like this throughout the year?
No. PC sales rose 5.7% year-over-year in the January-June period, while consumer shipments fell 3.9% in the June quarter. That’s because retailers are selling fewer premium laptops (priced over $1,000) and focusing instead on budget-friendly devices.
Online retailers used the summer months to discount old stock and therefore did not order new computers, hurting shipping volumes. Instead, they predicted buyers would purchase new computers on Independence Day, with other sales continuing through the second half of the year. Growth in consumer PCs has shifted to the second half of this year, data from IDC shows.
Which computer manufacturers are winning in this consumer surge?
HP is India’s largest PC brand with almost 30% market share, but the consumer segment was down more than 10% year-on-year in the September quarter. HP faces stiff competition from new brands in the premium and entry-level segments, IDC said in a note last week.
Consumer sales of Lenovo, India’s second largest PC brand overall, grew by more than 14% during the period. But the biggest winner was Asus, which is now India’s second largest consumer PC brand with a share of almost 6%. Asus is known for high-end gaming laptops and accessories like headsets and keyboards designed for die-hard video game enthusiasts and professional gamers.
How will these trends shape the PC market?
Government contracts and office mandates are important to maintaining computer sales. Consumers seem to buy only feature-rich computers (e.g. gaming laptops) or come with attractive holiday season discounts.
In the long run, budget-friendly and student-focused laptops may become increasingly seasonal as retailers will keep inventory low in the first half of the year and be flooded with new launches during festive and sale seasons.
What about the competition from new types of devices like tablets?
iPads and tablets were once considered viable alternatives to some computers for everyday, light use. But IDC said shipments of both removable and slate tablets fell about three years annually from January to June.
Regular buyers continue to buy tablets but offices, governments and other institutions have stopped buying tablets. Sales of Samsung tablets and According to IDC data, Apple’s iPad fell 38% and 14% respectively during this period.
Analysts said another reason was that educational institutions, which were once regular customers, stopped bidding for tablets.
