Asus powers up, AI-powered PCs to drive 5-10% of shipments by November
Arnold Su, vice president – consumer and gaming PC, system business group, Asus India
Taiwanese personal computer (PC) maker Asus has announced an ambitious plan for artificial intelligence (AI)-powered PCs to make up 5-10 per cent of its total shipments by the end of 2024. However, with demand surging, the company now expects to reach this target ahead of schedule, aiming for November instead.
The company expects the ongoing festival season to boost sales by 5-10 per cent compared to the previous year, driven by a new refresh cycle, a senior executive at the firm said.
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“During the pandemic, many consumers were forced to buy PCs. This resulted in a slight decline in PC sales in 2022 and 2023. In 2024, however, a new purchase cycle has begun, with customers now looking to upgrade their devices,” Arnold Su, vice-president — consumer and gaming PC, system business group, Asus India, told Business Standard.
Su added that this is also the first year for AI PCs, so many consumers are seeking to upgrade to more powerful devices.
“Next year, AI PCs will be the main driver of growth for the overall business,” Su said.
India’s PC market, which includes desktops, notebooks, and workstations, grew 7.1 per cent year-on-year (Y-o-Y) to 3.39 million shipments in the second quarter (Q2) of calendar year 2024, according to data from the International Data Corporation (IDC).
The Taipei-headquartered firm is not a contender in the commercial PC market but witnessed a 131.7 per cent Y-o-Y growth in this segment in Q2.
Asus became the second-largest player in the consumer segment behind HP in 2023.
“In the second half of 2024, we will be a strong no. 2 (consumer) brand in India, and we are preparing to challenge the no. 1 position in the next two years. By the end of 2024, we aim to cross the 20 per cent market share benchmark, up from 18 per cent last year,” Su said.
According to Su, Asus aims to capture 25-30 per cent market share in the consumer PC market within the next two years. To achieve this, the company is doubling down on expanding its offline retail footprint.
“Currently, India’s PC penetration rate is just 11 per cent. We want to target the remaining 89 per cent of households, rather than competing within the existing 11 per cent… By the end of 2025, our end goal is to be able to service 600 districts across India,” said Su.
As much as 70 per cent of the company’s sales currently come from offline channels. The PC maker will open its 300th Asus exclusive store on Thursday. In addition, the company operates around 1,500 ‘shop-in-shops’ — retail outlets that sell Asus PCs.
Asus has also partnered another 2,500 small dealers who sell the company’s products. In total, there are more than 4,000 shops in India selling Asus products.
“The Indian market is not just for entry-level products. It is also for the latest technology and our premium offerings. Catering to this demand will further help us increase our market share,” Su added.
First Published: Oct 02 2024 | 7:27 PM IST