AI PCs Fail to Boost Global PC Market in Q3 2024 Despite Industry Hype

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On Thu, 10 Oct, 12:02 AM UTC

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Despite the buzz around AI-powered PCs, the global PC market shows mixed results in Q3 2024, with analysts disagreeing on whether shipments slightly increased or decreased. The industry anticipates stronger growth in the coming years as AI technology matures and Windows 10 support ends.

Mixed Results in Q3 2024 PC Shipments

The global PC market showed mixed results in the third quarter of 2024, with analysts disagreeing on whether shipments slightly increased or decreased. Gartner reported a 1.3% decline in global PC shipments, totaling 62.9 million units 1, while Canalys claimed a modest 1.3% year-on-year rise with 66.4 million units shipped 1. IDC presented a different figure, reporting a 2.4% decrease to 68.8 million units 2.

AI PCs Fail to Boost Demand

Despite the industry hype surrounding AI-powered PCs, these new devices did not significantly boost demand. Gartner Director Analyst Mikako Kitagawa noted, "Even with a full line-up of Windows-based AI PCs for both Arm and x86 in the third quarter of 2024, AI PCs did not boost the demand for PCs since buyers have yet to see their clear benefits or business value" 1. The lack of a clear definition for AI PCs and performance issues with some Arm-based Copilot+ machines may have contributed to the lukewarm reception 1.

Market Leaders and Regional Variations

Lenovo maintained its position as the top PC vendor, followed by HP and Dell. Asus and Apple competed for the fourth and fifth spots 1. The US market showed growth, with a 5.6% increase compared to the same period last year, while the EMEA and Asia-Pacific markets experienced declines 12.

Future Outlook and AI PC Adoption

Despite the current stagnation, analysts remain optimistic about the PC market's future. Gartner and Canalys expect stronger performance in the coming quarters, with more robust growth anticipated in 2025 1. IDC predicts that new AI-focused PCs from Qualcomm, Intel, AMD, and Apple's M4-based Macs will drive the premium segment 2.

Factors Influencing Future Growth

Several factors are expected to contribute to future market growth:

  1. Windows 10 End of Support: With Windows 10 losing official support on October 14, 2025, businesses are expected to upgrade their fleets to avoid extended support fees 12.

  2. AI PC Development: The next year will focus on developing software, use cases, and target audiences for AI-enabled hardware 2.

  3. Commercial Demand: Canalys reports that 54% of channel partners anticipate growth in their PC business in the second half of 2024 1.

Challenges and Expectations

While the industry is optimistic about AI PCs, mass market adoption may take longer than expected, potentially extending into 2026 3. The demand is currently concentrated in the entry-level segment, with the premium segment expected to grow as AI capabilities mature 3.

As the PC market navigates this transition period, the true impact of AI-powered devices on consumer demand and industry growth remains to be seen. The coming years will be crucial in determining whether AI PCs can live up to the hype and drive significant market expansion.

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