AI-powered PCs have quickly become popular, now making up 14% of all personal computers shipped in the second quarter of 2024, according to a report by research firm Canalys. This growth is mainly driven by Apple, which has taken the lead in the AI PC market. Adding artificial intelligence (AI) features to personal computers is helping to revive a market that has been going through one of its toughest times in recent years.
Why AI PCs are Changing the Market
The significance of AI PCs stems from the efforts of computer makers and chip manufacturers to create devices that can perform AI tasks on their own, without relying on cloud services. This capability is particularly crucial as the personal computer industry slowly recovers from a serious downturn. AI PCs, with their special features for handling AI tasks, are expected to keep driving demand and help the market not only recover but also thrive in this new era of technology.
The Importance of AI PCs
Computer makers and chip manufacturers are focusing on AI PCs that can perform tasks directly on the device, eliminating the need for cloud support. This is important as the industry recovers from a major slump. These PCs feature neural processing units (NPUs) that make AI applications faster and more responsive, meeting the growing consumer demand for machines that can handle complex tasks smoothly. The emergence of AI PCs marks a significant shift in personal computer design, opening up new possibilities and driving the development of future technologies in the market.
Apple’s Leadership in the AI PC Market
Apple has established itself as the leader in the AI PC market, commanding about 60% of it. Largely due to its Mac computers powered by M-series chips with neural engines designed for AI tasks. This integration of advanced AI capabilities has resonated with consumers, making Apple’s AI PCs the preferred choice for better performance and user-friendly interfaces, showcasing Apple’s commitment to innovation and understanding customer needs.
However, Apple isn’t alone in this space. The Windows ecosystem is also experiencing significant growth in AI PC shipments, with a 127% increase from the previous quarter, driven by the launch of Microsoft’s “Copilot+” AI PC in May, powered by Qualcomm’s Snapdragon chips. Intel has also increased its AI PC chip shipments, aiming to capitalize on the growing demand for AI-capable devices, reflecting a broader industry shift toward more intelligent, adaptive computing solutions.
Impact of AI PC on the Premium Market
The rise of AI PCs is significantly impacting the premium segment of the personal computer market. According to Canalys, shipments of Windows PCs priced over $800 grew by 9% in the second quarter of 2024. Showing that consumers are willing to pay more for AI PCs that offer better performance and user experiences.
Lenovo, a major PC manufacturer, saw a 228% increase in AI PC shipments during the June quarter compared to the previous one, though AI PCs still make up only about 6% of its total Windows PC shipments. This rapid growth highlights the growing importance of AI PCs in Lenovo’s lineup and suggests potential for further expansion as more consumers recognize its benefits.
Other major players like HP and Dell have also seen an increase in their AI PC shipments. HP reported that 8% of its Windows shipments were AI PCs in the second quarter, while Dell’s AI PCs accounted for just under 7% of its total Windows shipments. These figures indicate that AI PCs are becoming a more important part of these companies’ offerings as they adapt to changing market demands.
The Future of AI PC and the Market
As the personal computer industry recovers, AI PCs are key to its future. The integration of AI is boosting demand and driving innovations that could reshape the market. Success will depend on how well PC makers and chip manufacturers continue to innovate.As consumers recognize the benefits of AI PCs, demand will grow, leading to more competition.
A major focus will be on developing powerful NPUs to drive the next wave of AI innovations, allowing PCs to handle complex tasks faster and more efficiently. This advancement will make AI PCs even more appealing and could transform how we use computers in daily life and work.
Key Quote
“As the market changes, AI PCs are not just a trend; they are a big shift in how we use personal computers,” said Ishan Dutt, principal analyst at Canalys “The integration of AI is setting a new standard, and we expect this segment to expand rapidly as more consumers and businesses recognize the advantages these devices offer.”
This statement emphasizes the growing importance of AI PCs in shaping the future of the computer industry. As both consumers and manufacturers adjust to the increasing demand for AI-enhanced technology, AI PCs are poised to play a central role in the ongoing evolution of personal computing. With a strong foundation now set, the second half of 2024 is likely to see even greater momentum in adopting AI PCs, driving further innovation and growth in the industry.