LONDON: India’s PC market (excluding tablets) grew 31.9% year-on-year in Q1 2026, reaching 4.4 million units, according to Omdia’s latest research. Growth was driven largely by strong notebook demand. Notebook shipments reached 3.5 million units, up 44.8%, supported by robust consumer demand and large-scale government-driven education tenders, such as the Electronics Corporation of Tamil Nadu (ELCOT) project. Desktop shipments declined 2.7% to 882,000 units, as elevated component prices and a market shift toward mobile form factors led to order deferments. The tablet market also recorded growth in the quarter, reaching 1.1 million units, up 5.8%, as consumer demand and promotions offset weaker deployments.
Strategic inventory front-loading drives Q1 surge
Market performance in Q1 2026 reflected a strategic response to rising component costs. Brands and channels front-loaded their inventory, to secure pricing ahead of anticipated increases. This triggered a 43% surge in the consumer market as buyers moved to purchase high-performance PCs at older price points, a trend amplified by intense online retail promotions.
“Q1 2026 demonstrated how quickly the market can respond to pricing signals,” said Ashweej Aithal, Senior Analyst at Omdia. “Faced with the prospect of higher component costs, consumers, businesses and channel partners accelerated purchases and inventory builds to secure existing pricing. This was particularly evident in the commercial PC market, which grew 25%, supported by large government-led education projects and organizations bringing forward planned device refreshes.”
Tablet market shifts and segment performance
The tablet market recorded 6% overall growth in Q1 2026, with performance by segment reflecting a shift in demand strength. The education sector faced a 35% contraction, as the public sector held back on new spending to realign funding plans and priorities for coming quarters. This cooling was offset by 14% growth in the consumer segment, fueled by a market-wide push for premium devices featuring higher-quality displays. Consumer demand also intensified due to strong entries from Chinese vendors, who are capturing share with high-quality devices. Meanwhile, the commercial segment, excluding education, surged by 58%, as small and medium sized businesses increasingly adopted tablets to digitize core business workflows and improve operational agility.
“Throughout this period, local production has played a pivotal role in maintaining consistent shipments, allowing vendors to keep inevitable price increases more manageable,” added Aithal.
Full year 2026 market outlook
The full-year 2026 PC market is projected to reach 15 million units, representing a 5.3% year-on-year decline. “The near-term outlook is cautious as the continues to face memory and storage supply constraints,” said Aithal. “Looking ahead, component-driven cost pressures are leading vendors to prioritize higher-value models, making entry-level devices less readily available and more challenging to produce profitably. At the same time, AI-capable PCs are becoming increasingly mainstream, and are expected to support demand even as consumer and business spending remains under pressure.”
In the public sector, large-scale education tenders are expected to remain an important source of volume, although demand may become increasingly unpredictable. While the broader market faces downward pressure, two segments are providing greater stability: gaming, where demand for high-performance hardware remains relatively insulated from price volatility, and Global Capability Centers (GCCs), which are becoming an important source of enterprise buying through investments in specialized, high-performance systems that support their roles as strategic innovation hubs.
“Enterprise technology spending is becoming more selective,” said Aithal. “While some public-sector projects are being delayed as organizations adjust budget and priorities, segments such as gaming and expanding GCCs have remained more resilient to cost pressures, contributing to a more segmented market.”
The tablet market is expected to grow in 2026, with shipments projected to reach 5.4 million units, representing year-on-year growth of 9.8% . Education shipments are forecast to increase by 36.5%, however, the market remains heavily influenced by government-led education projects, which can be affected by procurement timelines. In response, vendors are focusing on larger, high-performance displays aimed at productivity-conscious consumers.
To help mitigate component-driven price increases, major smartphone vendors are placing greater emphasis on local manufacturing. Chinese brands in particular are expanding their local operations, signaling a clear shift in strategy to strengthen supply-chain resilience and maintain competitive pricing. This approach may help offset cost pressures while supporting continued market expansion.
