Dive Brief:
- Enterprises were in no rush to invest in AI-optimized PCs, according to a Thursday report published by Gartner. Worldwide shipments of desktop and laptop units grew a modest 1.3% in 2024 to 245 million but failed to surpass 250 million for the second consecutive year, according to the analyst firm.
- AI PCs did contribute to the slight uptick, which was also driven by enterprises upgrading to Windows 11, Gartner said. Worldwide shipments increased 1.4% in Q4, marking the fifth consecutive quarter of incremental growth.
- “Given the uncertain economic environment both through 2024 and into 2025, budgets for PC replacements have been reduced, leading businesses to delay moving to Windows 11,” Gartner Senior Director Analyst Ranjit Atwal said in an email.
Dive Insight:
Major vendors are banking on enterprise AI compute requirements to reignite PC purchasing as the clock ticks down to the end-of-support deadline for Windows 10 in October. Despite last year’s flurry of AI PC activity, the convergence has yet to move the needle significantly.
Businesses invested in AI and generative AI in the cloud rather than in on-prem workstations last year, Atwal said. “Most organizations don’t currently see the value of an AI PC,” he added. “The issue is having to pay a premium.”
As the top three manufacturers — HP, Dell and Lenovo — make Copilot keys and neural processing units standard features, the distinction between AI and non-AI PCs may soon be moot. Gartner expects AI-optimized gear to account for more than half of total laptop shipments this year and fully eclipse standard units in 2026.
Manufacturers expressed a more cautious outlook.
HP President and CEO Enrique Lores said the company is operating under the assumption that the PC market will gain momentum this year, fueled by multiple refresh catalysts, including AI, during a November earnings call.
More than 15% of HP’s PC shipments were AI units during the company’s final quarter of its 2024 fiscal year, which ended Oct. 31. Lores said he anticipates AI PCs will make up one-quarter of shipments this fiscal year.
While AI readiness is an enterprise priority, the shift to Windows 11 is a more immediate concern for procurement teams.
“Windows 11 upgrades are a major driver that organizations will have to address through 2025," Atwal said. Some organizations may not respond the way the industry expects, he warned.
“The fear is that businesses will upgrade on existing compatible PCs to extend lifetimes,” said Atwal.
