PC Market Struggles Despite AI Innovations and Incentives

PCMarket : PC Market Struggles Despite AI Innovations and Incentives

The PC market remains weak despite incentives to boost sales. In 2024, only 245.4 million desktop PCs and notebooks with Windows, macOS, and Chrome OS were sold. This information comes from a preliminary estimate by market analyst Gartner. Compared to 2023, the PC market grew by just 1.3%. Even towards the end of the year, there was no significant upward trend. In the fourth quarter, manufacturers sold 64.4 million devices, which is only 1.4% more than at the end of 2023. Gartner does not specify the distribution between desktop PCs and notebooks, but typically the ratio is around 1:3.

Before 2023, more than 250 million computers were sold annually. The years 2020 and 2021 saw particularly high sales of over 300 million units due to the coronavirus pandemic. At the beginning of each year, Gartner releases preliminary figures for the PC market, and these estimates are usually accurate.

Despite many incentives, the market has not responded as hoped. Since 2024, Microsoft and major notebook manufacturers have focused their marketing on AI-enabled computers with Copilot+. However, this has not captured much interest. Intel announced that in 2024, they shipped about 1.5 million Lunar Lake processors (Core Ultra 200V) with AI units. Qualcomm’s ARM processors from the Snapdragon X series are expected to have even lower numbers. Consequently, the market share for Copilot+ PCs is around one percent.

Another factor contributing to the lack of new purchases is the upcoming end of support for Windows 10 in the coming October. Microsoft supports Windows 11 only from Intel’s Core i-8000 and AMD’s Ryzen 2000 series onwards. On systems with older CPUs, Windows 11 can only be installed with workarounds. Without Windows 11, private users will not receive important security updates.

The figures for the second half of 2024 are somewhat inflated due to subsidies in China. The Chinese government encourages new purchases of desktop PCs and notebooks through trade-in bonuses. Since August, buyers who trade in an old device receive a 15% refund on the new computer. China plans to continue such programs in 2025.

These efforts highlight the challenges faced by the PC market as it tries to recover from a period of high sales during the pandemic. While there are attempts to innovate with AI technology and incentives to purchase new devices, the market has yet to see a significant resurgence. Factors like software support limitations and regional subsidies play a role in shaping the market dynamics.

Overall, the PC market is navigating a complex landscape of technological advancements, consumer interest, and economic incentives. The coming years will be crucial in determining whether these strategies will lead to a more robust market or if further adjustments will be necessary to stimulate growth.