 "AI will be game changer for PC segment: HP India's Ipsita Dasgupta")
At a time when India’s personal computer (PC) market has begun to show signs of recovery after a year of sluggish demand and declining shipments, global PC maker HP believes that artificial intelligence could well be the game changer for this segment.
The recently appointed managing director and senior vice president of HP India, Ipsita Dasgupta feels that AI would be a “game changer” in creating more consumer demand.
“As AI becomes a significant part of everything we do, the AI-enhanced PC plays an enormous role in what is going to be the most transformational thing that’s happened since telephony,” Dasgupta told Business Standard.
She added that the opportunity for growth in India is massive, given the low PC penetration rate of around 20 per cent. “We believe, in the next five years, the total addressable market (TAM) will double,” she said.
HP, on Wednesday, announced the launch of its AI-enhanced OMEN Transcend 14 laptop series in India, crafted for gamers who indulge in both playing and creating content.
The company’s next phase of growth is expected to come from segments like education, and SMBs.
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“There was softness in the market last year, and much of it was in the consumer segment… The opportunity, when there is softness, is to think of the future. And there is no question that the future is going to grow,” said Dasgupta.
HP is also looking to expand into tier 3 and beyond regions. To cater to consumers in smaller cities, the company has been ramping up its offline retail presence. It currently has over 770 exclusive HP World stores, and around 4,000 retail outlets in 425 cities. Of the 770 exclusive HP World stores, 100 were added in 2023.
India’s PC market, which includes desktops, notebooks, and workstations, declined 6.6 per cent year-on-year to 13.9 million shipments in the calendar year 2023, according to data from the International Data Corporation (IDC).
Shipments across both commercial and consumer segments saw a sharp decline primarily due to slowing demand, low market sentiment and reduced procurement by enterprises and SMEs.
HP, which has maintained its top spot in the PC market since 2016, led the market with a share of 31.5 per cent last year, with a strong showing in both the consumer and commercial segments.
The company has also witnessed a strong start to the new year, Dasgupta added.
“We saw quite a bit of pickup in the first quarter in the government segment. But this will go down significantly as the elections are coming up. We have, however, anticipated that and prepared for it,” she said.
The PC market rebounded in the second half of last year, with 12.9 per cent YoY growth after a weak first half. However, the decision on import regulations, improving market sentiment, and an aggressive push from vendors ensured a market recovery in the second half of 2023, according to analysts.
HP is also among many other PC makers vying to expand its manufacturing footprint in India via the IT Hardware PLI 2.0. The company is expected to begin local production under the PLI mid-next year.
YoY PC Market Share Data - Top 3
Source: IDC
| Company | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| HP | 31% | 26.50% | 28.70% | 31.50% | 30.20% | 31.50% |
| Lenovo | 20.60% | 32% | 21.70% | 18.40% | 18.90% | 16.70% |
| Dell | 23% | 19.80% | 23.20% | 23.60% | 19.20% | 15.50% |