Analysts said the slump in PC sales could end next year as consumers appear ready to buy newer PCs and demand for devices equipped with artificial intelligence features further boosts the market.
The Zhitong Finance App learned that analysts said that the slump in PC sales may end next year as consumers seem ready to buy newer PCs and demand for devices equipped with artificial intelligence functions further boosts the market.
Analysts Ben Caddy and Kieren Jessop said in a report on December 20: “At the end of a difficult year for the PC market, there is finally reason to be optimistic. Canalys anticipates that the PC market will resume 8% growth in 2024 as customers look to update their pandemic-era PCs and the advent of new artificial intelligence devices.”
Canalys said Microsoft (MSFT.US) will end support for its Windows 10 operating system on October 14, 2025, which is in line with its normal 10-year support lifecycle, which “could prevent hundreds of millions of devices from getting a second life” and will further boost sales of new PCs.
Meanwhile, market research agency IDC said, “By 2024, the huge and aging installation base of commercial PCs will exceed the four-year mark. It is expected that this will require an update, which coincides with the urgent need to migrate to Windows 11.” The company expects the PC market to grow by 3.4% next year, starting in 2023.
According to IDC data, global PC sales growth in 2020 reached the highest level since 2010 due to the pandemic as people switched to remote work and study. In the third quarter of 2023, global PC shipments were 68.5 million units, down 7.2% from the same period in 2022.
Since the beginning of 2022, shipments have continued to decline quarterly due to macroeconomic headwinds, weak retail and commercial demand, and the shift of IT budgets from equipment procurement.
Canalys said the boom in generative AI could boost PC sales as consumers actively seek to integrate AI features to improve productivity and leisure experiences.
The agency predicts that 60% of PCs will be equipped with artificial intelligence capabilities by 2027. “The PC is at the heart of modern work and life, and now it will continue to evolve in software and hardware to keep up with this trend.”
HPQ.US CEO Enrique Lores also pointed out in an interview last month that the company's new computer with artificial intelligence capabilities will help accelerate the growth of the PC market.
“Starting next year, this will double the growth rate of the PC category,” Lores said.
IDC analysts also said that while PCs with integrated artificial intelligence will initially target specific segments of the enterprise market, they are likely to enter a wider market as costs drop and more use cases.
They added: “The integration of artificial intelligence functions into PCs is expected to be a catalyst for equipment upgrades and be launched in 2024.”