According to the latest research from Omdia, the Indian personal computer market, excluding tablets, grew by 31.9% year-on-year in the first quarter of 2026, reaching 4.4 million units. This market expansion was primarily fueled by robust demand for laptops.

Laptop shipments reached 3.5 million units, marking a 44.8% increase compared to the same period last year. This surge was driven by strong consumer demand and large-scale government-led education tenders, such as the Tamil Nadu Electronics Corporation (ELCOT) project. In contrast, desktop computer shipments declined by 2.7% year-on-year to 882,000 units, mainly due to persistently high component prices and a market shift towards mobile devices causing order delays.

The tablet market also experienced growth during the quarter, with shipments reaching 1.1 million units, a 5.8% increase year-on-year. Consumer demand and promotional activities helped offset weaker enterprise and education deployments.

Strategic Stockpiling Drives First Quarter Surge

The market performance in the first quarter of 2026 reflects a strategic response to anticipated rising component costs. Brands and channel partners built up inventory in advance to lock in costs before expected price hikes. This move propelled the consumer market to grow by 43%, as consumers made early purchases to secure high-performance PCs at older price levels. This trend was further amplified by aggressive online retail promotions.

"The first quarter of 2026 demonstrated the market's rapid responsiveness to price signals," said Ashweej Aithal, Senior Analyst at Omdia. "Faced with expectations of rising component costs, consumers, businesses, and channel partners accelerated purchases and increased inventory to lock in existing prices. This was particularly evident in the commercial PC market, which grew by 25%, largely supported by large-scale government-led education projects and enterprises advancing their device refresh cycles."

Tablet Market Dynamics and Segment Performance

In the first quarter of 2026, the overall tablet market grew by 6%, with performance across different segments revealing a significant shift in demand structure. The education market contracted by 35%, primarily due to the public sector delaying new spending rounds to realign funding plans and priorities for future quarters. This cooling was offset by a 14% growth in the consumer market, driven by an overall market trend of upgrading to premium devices with features like high-quality displays. Furthermore, the introduction of high-quality products by Chinese manufacturers intensified competition, increased market share, and boosted consumer demand.

Simultaneously, the commercial market excluding education saw substantial growth of 58%, as small and medium-sized enterprises accelerated their adoption of tablet devices to digitize core business processes and enhance operational flexibility.

Aithal added, "At this stage, localized production has played a key role in maintaining stable shipments, allowing manufacturers to somewhat mitigate the pressure from inevitable price increases."

Full-Year 2026 Market Outlook

The full-year PC market for 2026 is forecast to reach 15 million units, representing a 5.3% year-on-year decline. "The short-term market outlook remains cautious, primarily due to the industry's ongoing challenges with memory and storage supply constraints," stated Aithal. "Looking ahead, component cost pressures are prompting manufacturers to prioritize high-value models, reducing the supply of entry-level devices and making profitability more difficult. Meanwhile, AI PCs are gradually becoming mainstream and will support overall demand, even as consumer and enterprise spending faces pressure."

In the public sector, large-scale education tenders are expected to remain a significant source of shipments, though demand volatility may increase. Despite overall market downward pressure, two segments offer greater stability: the gaming market, where demand for high-performance hardware is relatively insulated from price fluctuations; and Global Capability Centers (GCCs), which are increasingly becoming a key driver of corporate procurement and a strategic innovation hub through investments in high-performance professional systems.

"Enterprise IT spending is becoming more selective," Aithal noted. "While some public sector projects are being delayed due to budget and priority realignments, the gaming and expanding GCC sectors are more resilient to cost pressures, leading to a more pronounced market bifurcation."

The tablet market for 2026 is projected to grow, with shipments reaching 5.4 million units, a 9.8% year-on-year increase. Shipments in the education segment are forecast to grow by 36.5%, but this market remains highly dependent on government-led projects and is susceptible to procurement cycles. Consequently, manufacturers are shifting towards larger-sized, high-performance display devices to meet productivity-focused consumer demand.

To alleviate pressure from rising component costs, major smart device manufacturers are increasing their focus on localized production. Chinese brands, in particular, are actively expanding local operations, indicating a strategic shift towards supply chain resilience and price competitiveness. This initiative is expected to partially hedge against cost pressures and support continued market growth.