The Slump in PC Sales Expected to End in 2024
Analysts predict that the decline in personal computer (PC) sales will come to an end next year. Consumers are expected to purchase newer PCs, and the demand for devices equipped with artificial intelligence (AI) features will further boost the market. According to Canalys, the PC market is projected to grow by 8% in 2024 as customers look to replace their PCs from the pandemic era and new AI-capable devices emerge. The end of support for Windows 10 by Microsoft in 2025 could also drive sales of newer PCs, preventing older devices from being used further.
Refresh of Commercial PCs and Migration to Windows 11
Market intelligence firm IDC expects that the aging installed base of commercial PCs will require a refresh by 2024, coinciding with the need to migrate to Windows 11. IDC predicts that the PC market could grow by 3.4% in 2024 compared to 2023. The highest growth in global PC sales since 2010 was observed in 2020 due to the shift to remote work and learning caused by the pandemic. However, global PC shipments declined by 7.2% in the third quarter of 2023 compared to the same quarter in 2022.
The Integration of AI Capabilities as a Catalyst for Upgrades
The integration of AI capabilities into PCs is expected to serve as a catalyst for upgrades and boost PC sales. Canalys predicts that 60% of PCs shipped in 2027 will be AI-capable. The boom in generative AI is driving consumer demand for AI features that enhance productivity and leisure experiences. HP CEO Enrique Lores believes that computers with AI capabilities will accelerate the growth of the PC market, doubling its growth starting next year. While initially targeting specific segments of the enterprise market, AI-integrated PCs could eventually reach a broader market as costs decrease and more use cases emerge.
Hot Take: AI Capabilities Set to Drive PC Market Growth
The decline in PC sales is expected to reverse in 2024 as consumers seek out newer PCs with AI features. The end of support for Windows 10 and the need for migration to Windows 11 are additional factors that will drive sales of newer devices. The integration of AI capabilities into PCs is seen as a catalyst for upgrades, with the potential to double the growth of the PC category. As the demand for AI-capable PCs increases, the market is projected to experience significant growth in the coming years. This trend highlights the evolving nature of PCs in both software and hardware domains to keep up with consumer preferences and technological advancements.
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