Intel’s interim co-CEO Michelle Johnston Holthaus has come out swinging at archrival Qualcomm in the battle over AI PC’s.

Speaking at a recent Barclay’s Global Technology Conference she made the bold claim that a large percentage of the Qualcomm Arm AI PCs are being returned to retailers.

The bold claim comes as the two processor powerhouses battle for market share.

Qualcomm has set its sights on Arm-based Windows laptops, in an effort to try and carve out market share in the PC market, however owners are reporting “emulation” issue due to software issues.2024 Lenovo Yoga Pad Pro AI

Software developed for the Windows Intel platform does not necessarily run in native mode on the new Qualcomm AI notebooks.

While their Arm-powered Snapdragon processors promise exceptional battery life that puts x86 machines to shame, fanless designs, and integrated 5G connectivity Qualcomm’s strategy relies on the assumption that users will prioritize battery life and always-on connectivity over a critical aspect of computing devices.

For Windows users, it can’t run the applications they depend on daily – applications optimized for x86 architecture over the span of decades.

The register recently pointed out that while Qualcomm may have its “Windows revolution” mapped out, the reality is that Windows on Arm continues to struggle with compatibility issues that Qualcomm and Microsoft have yet to resolve.

Intel’s’ interim CEO claims that the problems relate to compatibility issues which we at ChannelNews have not been able to confirm due to the bulk of new AI notebooks being sold housing Intel processors.

According to Canalys, Qualcomm sold 720,000 PCs during the third quarter, giving it a market share of around 0.8%.

That marks huge growth for the company, but the reality is that the number is still very small.

What is happening is that Intel is under siege due to AI and falling demand for their most powerful processors.

Qualcomm and Arm PCs in general are becoming a serious competitor for Intel, and while they are currently far from posing an existential threat, they could in the future.

Johnston Holthaus believes that “x86 is the best overall basic architecture” and that they have many customers who are willing to put their trust in x86 and Intel’s future.

Research group Trend Force claims laptop sales are expected to grow by 4.9% next year, reaching 183 million units globally. A

One of the drivers will be Microsoft’s Windows 10’s end-of-life strategy.

B2B and large enterprises commercial are set to upgrade their devices to stay secure.

The report contradicts what some hardware manufacturers say: AI PCs, like Arm-powered laptops, will make a huge push and take a massive market share in the PC industry.

TrendForce highlighted, “The impact of AI-integrated notebooks on the overall market remains limited for now.”

IDC Research said in September that people purchase AI PCs not for their on-device neural processing capabilities but because they’re what’s available.

Even Microsoft’s much-touted Copilot+ PC accounted for less than 10% of shipments in the third quarter of 2024.

Even so, researchers believe that AI notebooks will have a slow but steady market penetration, especially as manufacturers integrate them into every laptop they offer.

As we move into 2025 the reality is that 2024 hasn’t been exactly a great year for the laptop market.

Although shipments are predicted to make a 3.9% year-on-year until the end of December, reaching 174 million units, the commercial market had limited growth due to global layoffs and political instability.

On the other hand, consumer notebooks demand has been primarily driven by promotions, driving the sales of entry-level notebooks.