While retailers are relying on AI as the key factor driving PC sales, a new report claims that it is not the allure of AI features, but instead the Windows update that is driving growth within the category.
An analysis from TrendForce says the boost in laptop sales in 2024 has more to do with Windows 11 updates rather than with new AI features within some of these PCs.
“The impact of AI-integrated notebooks on the overall market remains limited for now,” the report states. “However, AI features are expected to naturally integrate into notebook specifications as brands gradually incorporate them, resulting in a steady rise in the penetration rates of AI notebooks.”
Although the report doesn’t specify what it means by “AI-integrated notebooks,” it most likely refers to Copilot+ PCs, which have a more powerful neural processing unit (NPU) onboard that can aid local AI processing capabilities.
There are some reasons that sales of AI PCs are not picking up at the expected rate. One of them is the high prices they command, relative to other PCs. For manufacturers to get consumers to buy the AI PCs, they need to be able to sell themselves on how AI capabilities will benefit them and that hasn’t appeared to have happened yet.
For now, those who require AI tasks in their day-to-day activities are finding it through third-party AI tools such as ChatGPT. The average user is yet to be convinced that they need a specific piece of expensive hardware to fulfill tasks that third-party apps on their regular laptops cannot fulfil.
Then there’s also the issue of privacy with some consumers wary of the control over their that they’ll have with the AI PCs. Microsoft delayed the rollout of its Recall tool and has only now rolled out a preview version of it, and made the tool as an entirely opt-in feature.
TrendForce says that global notebook shipments are predicted to grow by another 4.9% to 183 million units in 2025.
Windows ending support for Windows 10 is what is driving new laptop sales, finds TrendForce.
Many older systems lack the hardware requirements for Windows 11, forcing users to upgrade their devices.
Worldwide shipments of traditional PCs dipped 2.4% year-over-year to 68.8 million units, during the third quarter of 2024, according to research firm IDC.
Lenovo’s accounted for the bulk of PC shipments in Q3 with 16.5 million units, up 3 per cent over the similar period in 2023.
HP and Dell shipped significantly less fewer PCs than Lenovo in the third quarter, with 13.6 million and 9.8 million units respectively.
“After two quarters of mild growth, the market is taking a breather before going into the year-end buying period,” said Bryan Ma, vice president with IDC’s Worldwide Device Trackers.
