PC Shipments in China: PC shipments in China fell 6% on weak demand

Shipments of PCs (including desktops, notebooks and workstations) to China fell 6% (year-on-year) to 9.1 million in the April-June quarter on continued weak demand.

According to the Canalys report, PC shipments in the country fell by 6% in the second quarter, with the consumer and commercial sectors falling by 3% and 9%, respectively.

Analyst Emma Xu said competitive dynamics in China’s PC market are becoming increasingly complex.

“Local AI regulations have limited the full rollout of Microsoft’s Copilot solution in mainland China. “This will push vendors to pursue localized strategies to develop AI-enabled desktops, either by integrating internal AI assistants or by building their own AI application ecosystems in collaboration with developers,” Xu explained.

The forecast predicts 13% AI-enabled desktop penetration in Greater China in 2024.

According to the report, vendors will need to make consistent portfolio investments to execute their AI PC roadmaps and adapt their go-to-market strategies to be agile and localized according to unique market demands.

Meanwhile, tablet sales rose 20% to 7.8 million units in the April-June quarter, driven by rising usage and online promotions. The tablet market is highly competitive as more and more smartphone vendors are expanding their portfolio to include tablets, as mentioned in the report.

According to Xu, AI opportunities are attracting more vendors from the education and Internet sectors to the device market, driving the growth of children’s tablets with educational content in mainland China.

To achieve better business results, vendors must focus on market expansion and differentiation to improve user experience and performance. The report shows that the use of artificial intelligence models on devices will be particularly beneficial in this regard.