Commercial Segment Outpaces Consumer Growth as Enterprises and SMBs Front-Load Purchases Ahead of Anticipated Price Increases
What Happened in India’s PC Market in Q2 2026?
INDIA, September 1, 2026 – India’s traditional PC market (encompassing desktops, notebooks, and workstations) recorded steady growth in Q2 2026, with total shipments reaching 3.9 million units, representing 12.1% year-over-year (YoY) growth, according to IDC’s Worldwide Quarterly Personal Computing Device Tracker. Growth was broad-based, with both consumer and commercial segments expanding and all three product categories, notebooks, workstations, and desktops, posting positive YoY growth. The quarter’s performance reflects continued channel confidence and forward buying behaviour across enterprise, SMB, and, to some extent, consumer channels.
The consumer segment grew 6.6% YoY, shipping 1.7 million units, while the commercial segment recorded stronger growth of 16.6% YoY, shipping 2.2 million units. The relative outperformance of commercial shipments underscores a market increasingly shaped by enterprise and SMB purchasing decisions made in anticipation of further pricing pressure.
Why It Matters
The Q2 2026 results point to a market that continues to grow steadily, but increasingly on the back of forward purchasing rather than pure end-user demand. Here’s what stakeholders should take away:
- Component supply disruptions and rising prices: There have been consistent disruptions in the availability of certain components, such as processors, GPUs, and SSDs, with memory (DRAM and NAND) emerging as a particularly acute pressure point over the past few quarters. Sharp increases in memory prices have pushed up overall device costs and heightened concerns among partners about further escalation in the near term. This has led to increased stocking of PCs in the channel, as partners sought to secure inventory ahead of anticipated price hikes and ensure demand is met with minimal delays.
- Buying pattern of enterprises: Commercial buyers accelerated purchases to lock in pricing before anticipated further cost increases, a pattern that could pull forward demand from subsequent quarters if sustained.
Market Dynamics: What Drove the Outcome?
Several converging factors shaped the quarter’s performance:
- Strong Public Sector Procurement: Unlike Q1 2026, improved supplies and the fulfilment of previously delayed orders led to strong performance in the Government and Education segments, which grew by 17.6% YoY and 24.8% YoY, respectively.
- The Apple factor: With Apple pushing hard in the channel and following the launch of the Neo toward the end of Q1 2026, the vendor upped the ante in both the consumer and commercial segments. Apple posted 89.0% YoY growth and has started making inroads into the enterprise segment as well. With competitive pricing and improved availability, Apple has the potential to gain further ground in the coming quarters. With lesser price increase and having a product like Neo, Apple seems to be an attractive option for buyers who had delayed their purchases due to price increase.
- Growing SMB demand backed by channel momentum: Small and medium businesses stepped up device purchases, supported by strong channel momentum. Also, a large share of SMBs are performing well and are yet to refresh their existing stock.
Segment Snapshot: Category Performance
- Notebooks: +14.0% YoY | Largest contributor across segments
- Workstations: +11.2% YoY | Continued demand from enterprises
- Desktops: +7.7% YoY | Returned to growth after recent softness
- Premium Notebooks (>US$1,000): +78.7% YoY | Consumer: +99.0% | Commercial: +63.3%
- AI Notebooks (total): +109.9% YoY
India PC Market at a Glance: Q2 2026
- Total shipments: 3.9 million units (+12.1% YoY)
- Consumer segment: 1.7 million units (+6.6% YoY)
- Commercial segment: 2.2 million units | Education: +24.8% YoY | SMBs: +21.0% YoY
- Top five vendors: HP Inc. (#1), Lenovo (#2), Acer Group (#3), Dell Technologies (#4), ASUS (#5)
“Despite signs of moderating end-user demand, channel partners and e-tailers continued to build up inventory aggressively through the quarter, positioning themselves ahead of the Independence Day sales period and the upcoming festive season,” said Bharath Shenoy, research manager, Devices Research, IDC. “This forward stocking reflects confidence that pent-up demand will materialize once promotional cycles begin, rather than a read on current sell-through. At the same time, with component and device prices trending upward, partners have an added incentive to stock now and protect margins, even as near-term sales soften.”
Vendor Landscape: Who Won the Quarter?
| Company | 2Q26 Shipments | 2Q26 Market Share | 2Q25 Shipments | 2Q25 Market Share | Year-over-Year unit change (2Q26 vs 2Q25) |
| 1. HP Inc | 1,150 | 29.4% | 1,077 | 30.8% | 6.8% |
| 2. Lenovo | 796 | 20.3% | 710 | 20.3% | 12.1% |
| 3. Acer Group | 579 | 14.8% | 518 | 14.8% | 11.7% |
| 4. Dell Technologies | 552 | 14.1% | 393 | 11.3% | 40.3% |
| 5. Asus | 301 | 7.7% | 270 | 7.7% | 11.4% |
| Others | 540 | 13.8% | 525 | 15.0% | 2.8% |
| Total | 3,918 | 100.0% | 3,494 | 100.0% | 12.1% |
| Source: IDC Worldwide Quarterly Personal Computing Device Tracker, August 2026 | |||||
HP Inc. retained the top spot with 29.4% market share, driven by strong SMB and enterprise demand (+12.9% YoY in commercial). The vendor is, however, facing strong competition in the consumer segment, where its shipments shrank by 3.5% YoY despite the inventory push.
Lenovo reclaimed second place with 20.3% market share. Strong demand from enterprises, especially from IT/ITES and global accounts, helped Lenovo grow by 13.1% YoY in the commercial segment, while an increased eTailer push helped it grow by 10.6% YoY in the consumer segment.
Acer Group held third position with 14.8% market share. Strong demand and order fulfilment in the Government and Education segments helped Acer grow by 25.1% YoY in the commercial segment. However, supply challenges in gaming notebooks and rising prices hampered its consumer segment performance as it witnessed a decline of 7.6% YoY.
Dell Technologies ranked fourth with 14.1% market share. Strong SMB helped Dell post 14.9% YoY growth in the commercial segment. Despite subdued channel traction and steering clear of the inventory push, Dell recorded steep growth of 337.1% YoY in the consumer segment, aided by a weak year ago base.
ASUS rounded out the top five with 7.7% market share. The vendor gained strong traction in the commercial segment, growing 120.1% YoY, and has started winning some enterprise orders as well. However, delayed supplies led to a 0.8% YoY decline in the consumer segment.
IDC Outlook: What’s Next?
Momentum in India’s PC market is expected to be flattish in the second half of 2026 in the commercial segment, supported by ongoing channel stocking activity and forward purchasing ahead of anticipated price increases. The sell-in is expected to be positive which is anticipated to be on similar lines during the same period in 2025. However, the consumer segment could see a sharp slowdown in the second half of the year, as rising device costs prompt buyers to delay purchases. Also, absence of manifesto deals like ELCOT in the second half of the year would have its impact.
- What could sustain growth? Continued SMB momentum, sustained enterprise refresh cycles, and healthy channel sentiment could support shipments through the rest of the year.
- What could slow it down? A correction in channel inventory built up through recent quarters, further component cost increases, and moderating consumer demand if pricing pressure persists.
- What should readers watch next quarter? Whether channel inventory levels normalize, how enterprise and SMB procurement cycles evolve, and whether consumer demand holds up under continued price increases.
“With Intel powered PC supplies remaining constrained through the quarter, vendors increasingly turned to AMD powered PCs to bridge the gap, and the response from commercial buyers has been encouraging,” said Navkendar Singh, AVP, Devices Research, IDC. “AMD is steadily gaining ground in the commercial segment, a trend that reflects both improved product acceptance and vendors’ efforts to diversify their processor mix amid ongoing supply constraints. Looking ahead, sell-in of PCs might start dwindling from Q4 2026 onwards as the prices expected to surge further and demand expected to drop. Also, 2027 could prove more challenging, as enterprise order volumes normalize and elevated pricing potentially delays procurement cycles among SMBs.”
Frequently Asked Questions
Why did India’s PC market grow in Q2 2026 despite ongoing price pressures?
India’s PC market grew in Q2 2026 primarily on the back of healthy enterprise and SMB spending. Enterprises continued hiring through the quarter, and PC procurement remained a core part of onboarding new employees, sustaining commercial demand. A large share of SMBs are yet to refresh their existing systems, and many began doing so during the quarter, adding further to overall growth. This enterprise and SMB led momentum helped offset the impact of ongoing price pressures on the broader market.
What risks could affect India’s PC market in the second half of 2026?
Looking ahead, India’s PC market faces a few key risks in the second half of 2026. Persistent shortages in memory, storage, and select processor categories continue to constrain supply and push up component and device costs. Elevated channel inventory built up through recent stocking activity will need to be sold through before partners place fresh orders, and a slower sell-out could weigh on future shipments. If price increases persist, they could slow the pace of the ongoing SMB refresh cycle and soften consumer demand.
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