North American IT Distribution Records Strong Revenue Growth in Q1

Sales through distribution in North America posted a second consecutive quarter of growth in the first quarter of 2025, according to IDC. Distributor Revenues came in at $19.9 billion, a 7.6% increase YoY. Personal Computing grew 27.8%, far exceeding expectations, while Software came in with a solid 13.2% growth.

"The primary catalyst for the growth in personal computing devices was the heightened uncertainty around tariff negotiations between the USA and trading partners," said Ruth Flynn, research vice president of 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 decline of 1.6%, Network Infrastructure grew 1%, and AV rounded out the top five product categories with a small decline of 0.9%.

The personal computing product group recorded $4.07 billion in sales, with most form factors enjoying double-digit growth. Detachable Tablets were the exception, declining 5.4%. Notebooks grew 26.9%, desktops saw 35.3% gains, while Workstations grew 49.3%, as the channel scrambled to pull in as much product as possible before potential reciprocal tariffs were 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 Q1.