The market for personal computing devices in India has been evolving rapidly over the past few years. Demand for laptops and desktops for education, work, and entertainment continues to grow steadily. However, a new challenge is now emerging. Due to a sharp rise in component prices, the cost of laptops and desktops could increase by up to 35% in 2026. This shift could affect both consumer affordability and the broader sector.
Let us understand the matter in detail and see how it might affect consumers and the market.
What’s Happening?
There are concerns that laptop and desktop prices could rise by up to 35% in 2026. The main reason is the increasing cost of critical components such as processors, graphics units, and memory. According to a report by Money Control, the price of DDR RAM has already increased 2.5 to 3 times, leading to a 10–12% rise in prices so far. An additional 8–10% increase is expected in March, while another 10% hike could occur over the next few months.
Devices that were previously priced between Rs 30,000 and Rs 35,000 are now approaching Rs 45,000. Prices may continue to rise for the next six to seven quarters, with relief likely only by the second half of 2027.
In 2025, the Indian PC market delivered a record performance. According to IDC, total shipments, including desktops, notebooks, and workstations, reached 15.9 million units, which is 10.2% higher than the previous year. This is the first time annual shipments have crossed the 15 million mark. In the December quarter, 4.1 million units were shipped, representing an 18.5% YoY growth.
Reasons Behind the Jump in Component Prices
DDR RAM and other memory components are under the most pressure. Due to rising demand for AI infrastructure, the prices of DRAM and NAND have increased sharply. Supply is being diverted toward high-margin servers and high-bandwidth memory segments, which has increased the Bill-of-Material costs for PC manufacturers.
A shortage of entry-level Intel processors is also a major issue, putting additional pressure on production. The costs of GPUs and other components are rising as well. In addition, the effects of dollar volatility, inflation, and the West Asia conflict are being felt across the supply chain.
Another potential risk is disruption in the Strait of Hormuz, which is a crucial route for energy and petrochemical supplies. If any disruption occurs here, input costs for semiconductor manufacturing could increase, although the impact would likely be indirect and delayed. Black markets and grey markets are also affecting the prices of assembled computers.
Potential Impact on the Indian PC Market
The year 2025 was exceptional for the Indian PC market, but the situation could change in 2026. As mentioned in Money Control, as per IDC and Counterpoint, PC volumes could decline by up to 8%. A high single-digit annual decline of around 7–8% is possible across both consumer and commercial segments.
Higher prices are likely to affect consumer demand. Entry-level buyers may postpone purchases or opt for models with lower specifications. Students, home users, and first-time buyers will be the most affected. Large enterprises completed many upgrades in 2025, while SMBs are now advancing their purchases.
Premium and professional segments such as gaming, creators, and enterprise users are less sensitive to price changes. Demand in these segments is expected to remain relatively stable. Brands are also adjusting product configurations, running promotional campaigns, and offering financing schemes to support demand.
What Does This Mean for Investors?
This situation presents mixed signals for investors tracking the PC sector. After the record shipment of 15.9 million units in 2025, a potential 8% decline in 2026 could put pressure on companies that rely heavily on volume growth. However, the resilience of the premium segment and the ongoing enterprise upgrade cycle could support certain brands.
Major vendors such as HP, Lenovo, Dell, Acer, and Asus recorded growth in 2025. They are now managing demand through promotions and financing options. SMBs and mid-market companies are also making purchases earlier than before, which is positive for companies that maintain efficient inventory management.
Overall, margins may face short-term pressure, but brands that manage price increases effectively and focus on premium segments could remain resilient in the long run.
What’s Next?
According to Money Control, prices are expected to keep rising for the next six to seven quarters, with stability likely only in the second half of 2027. Until then, pressure on memory supply driven by AI demand is expected to continue. If geopolitical disruptions occur in critical regions such as the Strait of Hormuz, the impact could intensify.
Despite a potential market slowdown, the premium segment is expected to sustain demand. Brands will need to focus on new configurations and financing options. For consumers, this may be a good time to purchase devices, as further price increases are possible.
Overall, 2026 could be a challenging year for the PC market, but recovery may begin from 2027. Investors should take a long-term view and closely monitor the inventory and pricing strategies adopted by major brands.
Disclaimer: This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The companies mentioned are cited as examples within the context of market developments. Investors are advised to conduct their own due diligence and consult their financial advisor before making any investment decisions.
Investments in the securities market are subject to market risks. Read all related documents carefully before investing.
