AI Boosts PC Prices Without Impacting Shipments, According to IDC

In 2024, the traditional PC market is expected to experience a period of stagnation, according to a recent report by IDC. The market will see some refresh-driven purchases in the western regions, offset by reduced sales in China due to economic challenges. Despite these factors, IDC projects that PC shipments will reach 260.2 million units globally. This forecast is somewhat hindered by the high inventory levels in China, where the market is not expected to recover until the second half of 2025.

Looking at the global desktop and notebook computer market share by NPU performance, IDC's data provides valuable insights into the industry landscape. Factors influencing the rest of the world in 2024 include the emergence of AI PCs, which are equipped with neural processing units. These AI PCs, based on Qualcomm's ARM-based silicon and components from AMD and Nvidia, are anticipated to drive sales in the near term.

"While the noise around on-device AI may seem a bit unwarranted due to the lack of well-defined use cases for business and enterprise users, these devices will bring a significant shift in computing by offering content generation and increased productivity over the next few years," said Jitesh Ubrani, a research manager at IDC. He also noted that educating consumers about the benefits of on-device AI versus cloud-based solutions may pose a challenge in terms of adoption rates.

Despite the potential of AI PCs to enhance user experience and productivity, IDC emphasizes that these devices are primarily part of the refresh cycle and may not significantly expand the market in terms of shipment volume. However, vendors are expected to leverage AI capabilities to increase average selling prices, thereby driving revenue growth in the sector.

Looking ahead, IDC envisions a future where AI becomes ubiquitous in PCs, with market share projected to increase from 20 percent in 2024 to two-thirds of all shipments by 2028. This gradual integration of AI technologies into PC systems is poised to reshape the computing landscape and drive innovation in the industry.