Lenovo, a leading PC and laptop manufacturer, anticipates a significant uptick in demand for personal computers (PCs) and laptops in the latter half of the year. This projection is bolstered by the integration of artificial intelligence (AI) features and the impending upgrade to Windows 11. Notably, the surge is expected to primarily manifest in the commercial and premium gaming laptop sectors within the consumer market.Shailendra Katyal, the Managing Director of Lenovo India, highlighted the role of AI in stimulating demand, particularly in the commercial PC segment. He emphasized that the delay in refreshing assets such as laptops and PCs within enterprises was attributed to the anticipation of AI integration.

In India, where PCs contribute approximately 54% to Lenovo's annual revenue of $2 billion, the market exhibits notable resilience compared to global trends, even surpassing Japan's total addressable market.Given the sluggish performance of the PC market in India over the past two years, with flat sales reported in 2023, insights from Katyal carry weight. Lenovo, holding a substantial 17% market share, stands as the second-largest player in the segment. Factors such as low household PC penetration rates and the need for device replacements further fuel optimism for future growth. Looking ahead, Lenovo projects incremental growth in the Indian PC market, with advancements in AI capabilities driving adoption. The company foresees single-digit growth this year, escalating to high single digits next year as AI features become more pervasive and the market matures.

Lenovo's strategic focus on AI extends beyond mere integration, as it aims to leverage on-device generative AI functionalities to enhance user productivity and gaming experiences. Luca Rossi, President and EVP at Intelligent Devices Group (IDG), envisions AI-native devices comprising 70% of the market within the next few years, with premium offerings leading the adoption curve.Additionally, Lenovo's commitment to local manufacturing and compliance with government initiatives underscores its long-term investment in the Indian market. With plans to expand manufacturing capacities and delve into high-end GPU production, Lenovo is poised to bolster its presence in both the PC and smartphone sectors while contributing to India's self-reliance objectives.