China PC Market Surges 12% in Q1 2025 Driven by Government Subsidies

The mainland China PC market experienced a notable surge in the first quarter of 2025, with shipments reaching 8.9 million units. This figure represents a 12% year-over-year increase, driven primarily by government subsidies that stimulated the demand for device upgrades in the consumer market. The consumer market, in particular, saw a significant boost, with notebook shipments increasing by 20% year-over-year. This growth was largely attributed to the government's subsidy policies, which encouraged consumers to upgrade their devices.

In contrast, the commercial market showed more modest growth. Large enterprises maintained stable PC procurement levels, while the small and medium-sized enterprise (SME) market, which had been declining for 11 consecutive quarters, finally showed signs of recovery with a 2% year-over-year increase. This recovery indicates a shift in the market dynamics, with SMEs beginning to invest in new technology to enhance their operations.

The tablet market in mainland China also saw robust growth, with shipments reaching 8.7 million units, a 19% year-over-year increase. This growth was driven by the same government subsidies that boosted the PC market, as consumers sought to upgrade their technology. The tablet market is expected to grow by 5% in 2025 but may face challenges in 2026, with a projected contraction of 8%. This mixed outlook suggests that while the tablet market is currently thriving, it may face headwinds in the coming years.

The overall PC market in mainland China is expected to remain stable in 2025, with a projected growth rate of 6% in 2026. This stability is attributed to the continued support from government policies, which have been instrumental in driving market growth. The IT investment recovery and government initiatives to promote PC upgrades are expected to further boost the market, with SMEs and public sectors projected to grow by 4% and 1%, respectively, in 2025.

The competitive landscape in the mainland China PC market has also evolved significantly over the past two years. Domestic brands have intensified their competition, with companies like Ruituo, Huawei, Honor, and Xiaomi gaining market share in the consumer segment. These brands have been able to capitalize on the government subsidies and consumer demand for upgrades, challenging traditional market leaders like Lenovo, HP, and Dell. Huawei's upcoming release of the HarmonyOS PC is expected to further disrupt the market, potentially redefining the competitive dynamics in the long term.

In the tablet market, domestic smartphone manufacturers have taken the lead, exerting pressure on international brands. To stay competitive, manufacturers are expanding their product lines, focusing on gaming and productivity scenarios, and introducing high-end models with OLED screens. While these advancements aim to enhance the functionality of tablets, their success will ultimately depend on whether manufacturers can leverage technological progress to improve user experience.