Aging Devices, Not AI Computers, Are Driving Computer Shipments

Listen to the article
2 min

This sound is generated automatically. Let us know if you have feedback.

Brief description of the dive:

• The expected refresh cycle for enterprise-class PCs drove an increase in device shipments in the second quarter, according to Gartner research released Wednesday.
• Global PC shipments rose nearly 2% year over year, marking the third consecutive quarter of growth, the research firm said. The analysis showed a more notable increase in the U.S., where shipments rose 3.4% year over year.
• According to Gartner analyst director Mikako Kitagawa, AI-optimized PCs have not driven purchasing behavior. “Demand for AI-powered PCs has been weak because the product is still in the early stages of adoption and the true benefits of owning such a device are not yet clear to most buyers,” Kitagawa said in the report.

Brief description of the dive:

Enterprises were set to enter a device refresh cycle this year as hardware purchased to support remote work in 2020 approached retirement. The looming cliff for Windows 10 support, which ends next October, adds urgency to that effort.

“Businesses are looking to replace laptops and desktops before support ends, but we think that growth will happen late this year and early next year,” Kitagawa said.

Most major PC makers, including Lenovo, HP, and Dell, introduced PCs equipped with Microsoft Copilot Key and processors tailored for AI workloads in the first half of the year. But the industry’s AI PC marketing blitz has yet to move the needle for enterprises.

“Enterprises are replacing PCs because of age, not AI,” Kitagawa said.

But Gartner expects AI PCs to gain a foothold, accounting for as much as 1 in 5 units shipped by the end of the year. The benefits of workstations with neural processing chips, Gartner’s definition of AI PCs, will come to fruition as enterprises move beyond piloting use cases to incorporating AI into workflows.

“Most AI is in the cloud right now, so you don’t need an NPU on your computer,” Kitagawa said. Security concerns, along with other factors like cloud costs and latency issues, will push everyday AI tools to local devices, she added.