AI PC sales lag as global market slumps in Q3

AI PCs fail to boost market in Q3: Despite industry hype, the introduction of AI-powered personal computers did not prevent a decline in overall PC shipments during the third quarter of 2024.

• IDC reports a 2.4% year-over-year decrease in PC shipments, with only 68.8 million units shipped between July and September.
• Gartner estimates a similar decline of 1.3% year-over-year for the same period.
• The lackluster performance comes as a surprise to analysts who had anticipated a market rebound following the post-pandemic slump.

Challenges for AI PC adoption: The slow start for AI PCs highlights the difficulties in convincing consumers and businesses of their value proposition.

• Gartner analyst Mikako Kitagawa notes that buyers have yet to see clear benefits or business value in AI PCs, despite a full lineup of Windows-based options for both Arm and x86 architectures.
• IDC suggests that rising costs and a surge in PC volumes during Q2 contributed to the shipment decline, particularly affecting Apple.
• The research firm predicts that mass market adoption of AI PCs may take longer than expected, potentially extending into 2026.

US market bucks the trend: Despite the global decline, the United States saw significant growth in PC shipments during Q3.

• Gartner reports a 5.6% year-over-year increase in US PC shipments.
• The growth is attributed to stable macroeconomic conditions, healthy demand from the public sector, and strong back-to-school sales.

Future outlook remains positive: Both Gartner and IDC maintain optimistic projections for the PC market in the coming years.

• The researchers expect global PC growth to resume throughout the year and into 2025.
• A key driver for this anticipated growth is the end of support for Windows 10, scheduled for October 14, 2025.
• New AI-focused PCs from major manufacturers like Qualcomm, Intel, AMD, and Apple’s M4-based Macs are expected to boost the premium segment of the market.

Industry focus on AI development: The next year will be crucial for the AI PC market as it works to establish its place in the computing landscape.

• IDC analyst Linn Huang emphasizes that the coming year will be largely focused on developing software, use cases, and identifying target audiences for AI-enabled hardware.
• This period of development and refinement will be critical in determining the long-term success and adoption of AI PCs.

Balancing expectations and reality: The slow start for AI PCs in Q3 2024 serves as a reminder that technological advancements often face initial hurdles in market adoption.

• While the industry continues to promote AI PCs as the future of computing, the current market response suggests a need for more compelling demonstrations of their value.
• The coming months will be crucial for manufacturers and software developers to create and showcase practical applications that leverage AI capabilities in ways that resonate with consumers and businesses alike.