Acer Aims to Surpass Lenovo in India PC Market with AI Push and Retail Expansion

Acer aims to overtake Lenovo in India's PC market by FY25-end, driven by demand for AI-powered PCs and retail expansion into smaller towns. The Taiwanese major is targeting the number two position in the Indian PC market, with a growth strategy that includes AI-powered PCs and retail expansion into tier-III and tier-IV cities. Acer currently holds a 15.35% market share, trailing HP's 30% and Lenovo's 19.9%.

Acer, a Taiwanese tech giant, is positioning itself to overtake Lenovo in India's PC market by the end of FY25, aiming for the number two spot. The company's strategy revolves around the demand for AI-powered PCs and expanding its retail presence into smaller towns and cities. Currently, Acer holds a 15.35% market share, trailing HP's 30% and Lenovo's 19.9% [1].

Acer's Chief Business Officer, Sudhir Goel, attributes the company's growth to its focus on AI-powered PCs. He believes that as AI adoption grows, more customers will opt for AI-enabled devices for both personal and enterprise use. The company is optimistic about achieving an 18-20% market share, which would secure its position as the second-largest player in the market [1].

To support this growth, Acer has partnered with Plumage Solutions to expand domestic manufacturing. The company recently inaugurated a new facility in Puducherry, which will produce computer monitors, All-in-One (AIO) desktops, servers, workstations, and power adapters. This expansion aligns with the Government of India's Production Linked Incentive (PLI) Scheme for IT hardware, supporting the "Make in India" initiative [1].

Acer's retail expansion strategy is another key driver of growth. The company is increasing its footprint in tier-III and tier-IV cities to reach potential buyers who have traditionally had limited access to high-quality PCs. This move is expected to significantly boost Acer's market share in these segments [1].

The Indian PC market is valued at Rs 40,000–50,000 crore annually and is projected to grow at 5–6% per annum over the next five to six years. Acer's ambitious target is to achieve revenue of around $1 billion in the Indian market by the end of this year [1].

References:
[1] https://www.business-standard.com/companies/news/acer-india-pc-market-no2-target-ai-pcs-manufacturing-expansion-125081700281_1.html