HP India is seeing a strong recovery in the Indian PC market, driven by renewed consumer and business demand for advanced computing devices. Speaking at an AI PCs launch event in Bengaluru, Vineet Gehani, Senior Director – Personal Systems at HP India, pointed to the market’s positive trajectory and HP’s strategic initiatives in India to capitalise on this growth.
Following a prolonged period of market softness post-Covid, Gehani said that the past few quarters have seen a noticeable turnaround. “Both globally and in India, the market is coming back stronger. Consumers and businesses are seeking more from their devices, prompting upgrades and refreshes,” he told BW Businessworld.
Central to HP’s strategy is the integration of artificial intelligence (AI) into their latest offerings, which have fast become an industry standard across all PC players. The newly launched EliteBook Ultra and OmniBook X feature Snapdragon X Elite processors and neural processing units (NPUs) capable of 45 trillion operations per second (TOPS), which allows these devices to run language models and generative AI locally.
The company feels that AI PCs have the potential to boost efficiency, productivity and user experience. It anticipates that AI PCs will make up 50 per cent of the PC market within the next two to three years. Analysts tell BW Businessworld that demand for AI PCs is expected to pick up in 2025.
Market analyst firm Canalys has forecasted that 48 million AI-capable PCs will ship globally in 2024, making up 18 per cent of total PC shipments. This number is expected to exceed 100 million by 2025, which is 40 per cent of all PC shipments. By 2028, shipments of AI-capable PCs are projected to reach 205 million, with a compound annual growth rate of 44 per cent from 2024 to 2028.
Gehani especially stressed upon the transformative potential of AI in PCs when asked about what will drive this demand. “AI on devices brings added ease of use, better security, and enhanced audio-visual effects, driving growth in the industry.”
PC Market
HP dominated the Indian PC market in 2023, holding a 31.5 per cent share overall. It led both the commercial and consumer segments, with market shares of 33.6 per cent and 29.4 per cent, respectively.
Gehani attributed this success to HP’s ability to meet evolving consumer demands, particularly the trend towards premium, lightweight and highly capable devices. To support this drive, HP has put in place trade-in programmes and affordability schemes in collaboration with leading banks and non-banking financial companies (NBFCs).
However, on year-on-year (YoY) basis the company’s market share dropped to 30.1 per cent in Q1 FY24, down from 33.8 per cent in Q1 FY23 due to 8.8 per cent lesser shipments.
The Indian PC market, particularly within the commercial segment is facing challenges. The reduced procurement from IT/ITES sectors and global accounts has impacted volumes, but there’s a hopeful outlook for recovery by the end of 2024. This expected rebound is attributed to anticipated refresh buying from enterprises and a shift towards local assembly of commercial notebooks, which should help mitigate import challenges, as per IDC.
Looking ahead, Gehani projected a 5-10 per cent growth in the Indian PC market this year, with expectations of returning to double-digit growth soon.
In an effort to reach more customers, HP is currently showcasing the benefits of AI PCs at its retail stores and customer experience zones, where its sales associates and promoters are being upskilled and trained to explain in real-life use cases and how productivity gains can be made. “We are showcasing and explaining to users how to maximise productivity and hybrid work experiences with their devices,” explained Gehani.
Manufacturing in India and PLI
HP has been producing a range of products in India for some time, including laptop models like the HP EliteBooks, HP ProBooks, HP G8 series notebooks, as well as keyboards and mouse. However, the company has indicated that its latest AI-enabled PCs are currently imported.
“We already are doing a lot of our laptops and AI range of products from India. You will only see that the portfolio expanding as we move along,” Gehani said.
HP’s focus on India-based manufacturing is also supported by its participation in central government’s Production-Linked Incentive (PLI) scheme. “We are committed to the 'Make in India' journey and have strong plans for growth under the PLI initiative,” Gehani confirmed.
In 2023, HP CEO Enrique Lores had spoken on upscaling the company’s manufacturing capabilities in India to better cater to the local demand.
