India’s PC market is growing, but the forces behind that growth are changing. In Q2 2026, shipments rose around 12.1% year on year to 3.9 million units, according to IDC. The consumer segment grew 6.6% to 1.7 million units, while commercial shipments grew nearly 16.6% to 2.2 million units. But the standout number was elsewhere: shipments of AI-capable PCs jumped 109.9% year on year.
The surge came alongside a sharp rise in premium PC sales. Notebooks priced above $1,000 grew nearly 78.7% year on year, with consumer shipments rising 99% and commercial shipments 63.3%. AI-capable notebooks more than doubled. Together, the numbers point to a market where buyers are increasingly moving towards more capable and higher-value machines.
Beyond AI: What’s driving PC upgrades?
But that does not necessarily mean consumers are buying PCs because of AI. For many, the decision is still about better performance, longer battery life, stronger security and the ability to handle more demanding workloads. AI is increasingly becoming part of that broader upgrade proposition.
“AI is increasingly becoming an enabler of these experiences rather than a standalone purchase driver,” said Anurag Arora, senior director and general manager, Consumer Business, Dell Technologies India. Consumers, he said, are looking at AI-ready devices as investments in productivity, learning, creativity and entertainment.
That is particularly evident in the premium segment. Buyers already willing to spend more on a better PC are also getting AI capabilities as part of the package. HP India’s senior director of Personal Systems, Vineet Gehani, said customers are increasingly looking for clear gains in productivity, creativity and collaboration. “Premiumisation is less about higher specifications and more about better experiences,” he said.
PC makers, meanwhile, are putting considerable emphasis on AI in their product pitches. On-device processing, intelligent features, security and efficiency are becoming standard parts of the conversation. The challenge is to turn these capabilities into benefits that consumers can see and use, rather than simply another specification on the box.
Acer India’s chief business officer Sudhir Goel said the industry needs to do more to explain the practical benefits of on-device AI, including faster processing, lower dependence on cloud services and greater control over data. As AI processors move into mid-range machines and more applications use them, specific workloads could become a bigger reason to choose an AI PC.
For now, however, the commercial market remains the larger engine of growth. Dell’s commercial business grew around 15% year on year, helped by SMB demand, while HP’s commercial shipments increased around 12.9%. IDC attributed the commercial momentum to healthy enterprise and SMB spending. Enterprises continued hiring, creating demand for machines for new employees, while many SMBs that had delayed refreshes began replacing older systems.
This makes the upgrade cycle a more dependable source of demand than AI alone. “A large share of SMBs are yet to refresh their existing systems, and many began doing so during the quarter,” said Navkendar Singh, AVP, Devices Research, IDC. “Enterprises continued hiring through the quarter, and PC procurement remained a core part of onboarding new employees, sustaining commercial demand.”
That also changes the way AI fits into the enterprise market. Companies do not necessarily need an AI application to justify buying a new PC. Replacing ageing hardware, improving security and supporting a growing workforce are already strong reasons to upgrade. AI capabilities can add to that case, particularly for businesses looking at on-device processing and productivity.
Demand grows, but price remains a challenge
Government and education are providing another source of momentum. Acer’s commercial business grew 25.1% year on year, helped by strong demand and order fulfilment in these segments. Education could become a larger opportunity as coding, AI and digital learning become more common across colleges and engineering institutions.
The bigger concern is price. Rising component costs are pushing up device prices just as vendors are trying to take AI PCs beyond the premium segment. Higher prices could test demand among price-sensitive consumers and smaller businesses, particularly if the benefits of on-device AI are still difficult to quantify.
So far, premium demand has held up, suggesting that buyers are still willing to pay more when an upgrade delivers a meaningful improvement in performance and experience. The question now is whether that willingness will extend beyond affluent consumers and large enterprises as AI capabilities increasingly become available in more affordable machines.
“AI PCs are in demand because consumers and enterprises are looking for on-device processing capabilities, enhanced productivity, and better data security,” Singh said. “Most new PCs in the mid- to high-end segments are now built as AI PCs.”
That may be the more important shift in the market. AI is not necessarily creating a new category of PC buyers; it is changing what buyers expect from a new machine. As the technology moves down the price ladder, the distinction between a conventional premium PC and an AI PC is likely to become less meaningful.