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HP Sees AI as the “Game Changer” for India’s PC Market
AI-Powered PCs: At a time when India’s personal computer (PC) market shows signs of recovery after a sluggish year, global PC giant HP believes AI-Powered PCs could be the key to reigniting consumer demand.
AI to Transform the PC Experience
Newly appointed HP India Managing Director and Senior Vice President, Ipsita Dasgupta, is confident that AI will be a “game changer” for the PC industry. She envisions AI-enhanced PCs playing a crucial role in driving a transformation as significant as the invention of the telephone.
“As AI becomes a significant part of everything we do, AI-enhanced PCs play an enormous role,” Dasgupta told Business Standard.
Dasgupta highlights the immense potential for growth in India, considering the country’s low PC penetration rate of around 20%. She projects that the total addressable market (TAM) could double in the next five years.
AI-Powered PCs: HP’s AI-powered Play
HP recently launched its AI-enhanced OMEN Transcend 14 laptop series in India, specifically designed for gamers who create content alongside playing. This launch reflects HP’s commitment to AI-powered innovation in the PC market.
Beyond Gaming: Education and SMBs as Growth Engines
While HP targets the gaming segment with AI-powered PC features, the company also sees significant growth opportunities in education and the Small and Medium Business (SMB) sectors.
AI-Powered PCs: Capitalizing on Future Trends
Dasgupta acknowledges the market softness experienced in 2023, particularly in the consumer segment. However, she emphasizes the importance of focusing on future trends during such downturns.
“There is no question that the future is going to grow,” Dasgupta said, underlining HP’s optimism for the PC market.
Expanding Reach: HP Targets Tier 3 and Beyond Cities
HP is actively expanding its offline retail presence to cater to consumers in smaller Indian cities and towns beyond Tier 1 and Tier 2 locations. The company boasts over 770 exclusive HP World stores and roughly 4,000 retail outlets across 425 cities, with 100 new HP World stores added in 2023 alone.
Market Leader HP Maintains Momentum
According to International Data Corporation (IDC) data, India’s PC market, which encompasses desktops, notebooks, and workstations, experienced a 6.6% year-on-year decline in 2023, reaching 13.9 million shipments. This decline was primarily attributed to slowing consumer demand, reduced market sentiment, and lower procurement by businesses.
Despite the market slowdown, HP retained its leading position in the Indian PC market for the eighth consecutive year (since 2016) with a 31.5% market share in 2023. This strong performance reflects HP’s success in both the consumer and commercial segments.
Dasgupta also highlights a positive start to 2024, particularly in the government sector. However, she anticipates a potential dip due to upcoming elections. HP has strategically prepared for this cyclical slowdown.
Market Recovery and Local Manufacturing
The Indian PC market witnessed a rebound in the second half of 2023, with a 12.9% year-on-year growth, following a weak first half. Analysts attribute this recovery to improved government regulations on imports, a more positive market sentiment, and aggressive marketing efforts by PC vendors like HP.
HP joins other PC makers in exploring the expansion of its manufacturing footprint in India through the government’s IT Hardware Production Linked Incentive (PLI) 2.0 scheme. The company anticipates starting local production under the PLI scheme by mid-2025.
Conclusion
HP’s strategic focus on AI-powered PCs, expansion into new markets, and potential local manufacturing position the company to capitalize on the growth potential of the Indian PC market. As AI continues to evolve and integrate into daily life, HP’s vision of AI-powered PCs as a game-changer may very well become a reality.
