Sales through distribution in North America posted a second consecutive quarter of growth in the first quarter of 2025.
Distributor Revenues came in at $19,9-billion which is a 7,6% increase year-over-year, according to the International Data Corporation (IDC) North America Distribution Tracker (NADT). Personal Computing grew 27,8% year-over-year, far exceeding expectations, while Software came in with a solid 13,2% year-over-year growth.
“The primary catalyst for the growth in personal computing devices was the heightened uncertainty around tariff negotiations between the US and trading partners.” says Ruth Flynn, research vice-president: IDC Tracker & Data Products. “Despite risks to economic growth from rising tariffs, channels and commercial segments accelerated buying ahead of future cost increases.”
Other product categories were stable, with revenue up or down roughly a percent. Services had a modest year-over-year decline of -1,6% in 2025Q1, Network Infrastructure grew 1% year-over-year and AV rounded out the top five product categories with a small year-over-year decline of -0,9%.
The personal computing product group recorded $4,07-billion in sales in 2025Q1 with most form factors enjoying double digit growth. Detachable Tablets were the exception, declining -5,4% year-over-year. Notebooks grew 26,9% year-over-year, Desktops grew 35,3% year-over-year and Workstations grew 49,3% year-over-year, as the channel scrambled to pull in as much product as possible before potential reciprocal tariffs are implemented.
It is unclear how long these elevated sales levels will persist, and market contraction should be expected in the second half of 2025.
Software sales, which are not impacted by tariffs, continue to be very strong through distribution, coming in at $4,5-billion. The top three categories, Storage Software, Security Software and Physical and Virtual Computing Software each grew by double digits. These categories all roll up into the System Infrastructure Software market, which accounted for over 55% of software sales in 2025Q1.