Canalys’ latest data shows a smaller decline in worldwide PC shipments in Q3 2023 compared to the previous year. Shipments of PCs were down 7% YoY but rose 8% compared to Q2 2023. This represents the smallest annual decline over a year and indicates a recovery in inventory levels and underlying demand. Lenovo remains the dominant manufacturer, while HP and Dell also experienced growth. Apple experienced a significant decline due to COVID-related production halts, while HP’s growth was driven by inventory normalization. Canalys predicts a return to growth in the PC market during the holiday season and expects AI-capable PCs to account for 60% of all shipments by 2027. The industry is expected to face more challenges soon, but a device refresh cycle and end of support for Windows 10 are expected to drive sales in the second half of 2024 and beyond.
According to IDC, there is growing interest in AI PCs despite the lack of fully articulated use cases. HP and Lenovo are working on AI PCs for release between July 2024 and early 2025. IDC believes that generative AI could be a significant moment for the PC industry, offering personalized user experiences while preserving data privacy. PC shipments have been declining, but IDC expects a sales price boost with the launch of more AI devices next year. The PC market shrank in Q3, but there is evidence that the decline has bottomed out, with seasonal demand from the education market offsetting weak enterprise PC demand.
According to a survey by Deloitte, 56% of professionals are unsure if their companies have ethical guidelines for using AI. The report highlights the need for organizations to address ethical concerns related to AI, such as data privacy and transparency. It also emphasizes the potential risks and damages associated with unethical AI use, including reputational damage and regulatory penalties. Deloitte suggests a multi-step approach for companies to ensure AI’s safe and ethical use, including exploration, governance, training and education, pilots, implementation, and audit.
Why do we care?
So, will AI save the PC market? I’d offer “no,” but more importantly, can I get a “who cares?”. I included the ethics data from Deloitte because that’s the actual opportunity. The big opportunity is in helping customers use the tools effectively. This isn’t about device or hardware sales but service opportunities using the tool sets.
The revenue stream isn’t just in the hardware; it’s in offering consulting and managed services that help businesses navigate the complexities of implementing and maintaining AI.