Windows 11 Fuels PC Growth More Than AI

This year, there’s been considerable buzz surrounding AI-equipped PCs, but are they truly living up to expectations? According to a recent study by TrendForce, the notable increase in laptop sales for 2024 is attributed more to updates in Windows 11 rather than cutting-edge AI functionalities.

“The effects of notebooks with AI integration on the broader market are still minimal at this stage,” the report notes. “Nonetheless, as brands gradually incorporate these capabilities, AI functionalities are anticipated to become standard in notebook specs, which should lead to a steady increase in the adoption of AI notebooks.”

While the report does not clarify what constitutes “AI-integrated notebooks,” it likely refers to devices featuring Copilot+ technology, which incorporates a more advanced neural processing unit (NPU) capable of handling local AI tasks.

Several factors contribute to this situation. The TrendForce report indicates that aggressive marketing strategies and entry-level models have dominated the North American consumer market. In contrast, Copilot+ devices start at $999, targeting a more upscale demographic. Consequently, these higher-priced models are not the current driving force in the consumer Windows PC landscape.

To convince consumers to invest in these AI PCs, manufacturers must effectively communicate the advantages of AI features — something that appears to be lacking as of now.

Most users tend to rely on cloud-based AI resources like ChatGPT or find their current hardware sufficient for tasks such as video conferencing and document editing. For professionals, AI PCs could enhance efficiency in complex tasks like video editing, but the average user perceives limited immediate benefit, resulting in a decreased urgency to upgrade at this time.

The privacy issues surrounding the delays of the Recall feature have further complicated matters. Originally touted as the flagship AI function of Copilot+ PCs, it is only now beginning to roll out, nearly six months later.

Despite AI not being the marketing triumph Microsoft envisioned, the increase in PC sales is a positive development nonetheless. Global notebook shipments are projected to rise by an additional 4.9%, reaching 183 million units by 2025. As support for Windows 10 approaches its end, the need for both businesses and consumers to upgrade will only intensify.

The transition away from Windows 10 has become the primary driving force behind new laptop purchases. Many older systems lack the hardware necessary for Windows 11, such as TPM 2.0 support, compelling users to replace otherwise functional devices. This has triggered a surge in demand for non-AI laptops that are compatible with the updated operating system. Businesses and consumers who are upgrading, whether for compliance or enhanced functionality, are prioritizing budget-friendly options over newer, AI-driven models.

As AI PCs continue to advance and the technology progresses, their attractiveness could increase, especially if more applications are developed to take advantage of NPUs and prices decline. However, the drive for upgrading remains secondary to the pressing need to move to Windows 11, underscoring a disconnect between industry advancements and consumer priorities, which focus more on cost-effectiveness and essential functionalities rather than speculative innovations.