With premium PCs and refurbished computers, HP looks at India for the next wave of growth

HP Inc. hosted over 1,500 commercial, alliance, and distribution partners representing 95 countries during its Amplify Partner Conference in Las Vegas. (Image: Anuj Bhatia/The Indian Express)

As companies compete for a slice of the Indian consumer market, one emerging segment that continues to expand is premium PCs. India’s growing prominence, coupled with an increasing appetite for premium products, is driving the growth in this category.

“Premium is not just about pricing, but rather, it is about what you are providing to someone,” Dasgupta told indianexpress.com in an interview on the sidelines of HP Amplify 2024, which ended Thursday in Las Vegas. “If you are incorporating our premium products into your home, you can generate work at a higher capacity, with increased levels of efficiency and effectiveness. It’s a great experience across the board.”

Dasgupta cites the example of how more consumers are buying HP’s premium gaming notebooks, where the adoption of high-end products is particularly high. Dasgupta observes that the premium notion that people have for a product works in “select areas with a select group of people.” “We can see it in gaming because people who really want that processing power and want the ability to game at a high intensity go for our most premium products,” she said.

As Dasgupta pointed out, there has to be a use case for which a consumer spends extra on a premium product. She sees the adoption of premium computers for educational purposes in India. “In affluent homes, what happens is that the work computer you’re getting provides for everything that you need. So what you’re buying is actually for your children,” Dasgupta says.

HP’s Omen Transcend 14 is the lightest 14-inch gaming laptop. (Image: Anuj Bhatia/The Indian Express)

HP provided a glimpse of how PCs are evolving during the unveiling of the next generation of its AI-powered business notebooks on Thursday.

The increase in demand for upgrading to a premium PC is happening through interest-free financing and monthly payment options in a market like India. Consumers can now purchase the latest computer they may otherwise not have been able to afford. “The aspiration to buy premium, beyond the affluent, is through financing, and we recognise that, and we are very aggressive on that front,” Dasgupta said. However, she admitted that the company needs to be “louder” in the market when it comes to easy financing to purchase premium computers.

Even as demand for premium PCs continues to grow, Dasgupta reminds us that PC penetration is still very low in India. This provides a brand like HP with an opportunity to target first-time buyers as well as those who are unable to buy a new PC for financial reasons and, therefore, want to opt for refurbished PCs.

“The idea of being able to provide a computer to a student who can take it home and have it with them at all times is the reason we have the refurbished PC. It allows a first-time PC user access to a computer before they would have thought they could afford one,” explained Dasgupta.

India was the first country where HP introduced its partner-certified refurbishment programme last year. This programme allows customers to purchase HP Partner Certified refurbished devices that undergo rigorous testing and an extensive refurbishment process. Not only does a refurbished PC cost less, but it is also good for the environment. More importantly, if HP sells refurbished PCs, it also helps expand its reach and, eventually, the upgrade opportunity.

Attendees try HP’s Spectre foldable PC at the Amplify conference in Las Vegas. (Image: Anuj Bhatia/The Indian Express)

PC vendors like HP are already thinking about the future and expecting to see a “supercycle” in their industry, driven by AI, after several quarters of aggressive slowdown in PC sales. The company, along with its peers and ecosystem partners, is enhancing its latest computers with AI-powered features using the capabilities of generative AI algorithms.

Dasgupta foresees artificial intelligence bringing “personal customisation” to computers. “If a PC understands the way I need to work or how to summarise my notes, that’s the kind of capability we haven’t thought about yet.”

Dasgupta thinks that there’s a strong chance that AI will help drive sales of PCs. But she also anticipates that advanced AI capabilities will first come to premium computers.

(The writer was attending the Amplify 2024 in Las Vegas at the invitation of HP India)