In the third quarter of 2024, a notable 20% of all PCs shipped came with features to support artificial intelligence, as highlighted by Canalys. That translates to about 13.3 million AI-capable PCs hitting the market.
So, what makes a PC AI-capable? Canalys defines these machines as desktops and laptops outfitted with chipsets designed specifically for AI tasks, like neural processing units (NPUs). In a significant shift, Windows devices took the lead this quarter, making up 53% of AI-capable shipments for the first time. These devices, branded as Copilot+ PCs, run on Qualcomm’s Snapdragon ARM-based chips, not the usual Intel or AMD processors.
Ishan Dutt, a principal analyst at Canalys, pointed out this milestone: “For the first full quarter, Copilot+ PCs powered by Snapdragon X series chips were available. At the same time, AMD rolled out its Ryzen AI 300 series, and Intel debuted its Lunar Lake line. However, both AMD and Intel are still waiting for Microsoft to roll out Copilot+ PC support for their products, which is set to happen soon.”
Even with the hype, there’s a challenge. Canalys suggests that there might be hesitance among customers to invest in this new technology aimed at providing on-device AI. Dutt noted, “While there’s positive momentum, we need to demonstrate the real advantages of AI-capable PCs to both retailers and consumers.” He highlighted that premium devices, like Copilot+ PCs, have strict requirements, including at least 40 NPU TOPS (trillions of operations per second) alongside other specs.
These AI-capable devices are leaning towards the high end of the market. For example, during the Black Friday sales, the cheapest option at Currys is an HP OmniBook X 14-inch Copilot+ PC, discounted to £799 from £999. The priciest? A £2,149 Microsoft 15-inch Surface laptop. Most options seem to be above £1,000, which could limit their accessibility for many organizations.
Interestingly, Canalys found that around 31% of PC resellers don’t plan to sell Copilot+ PCs next year, while another 34% predict these models will make up less than 10% of their sales. Dutt remarked, “With Windows 10 nearing its end of support, the next few quarters are crucial for upgrading many older machines to AI-capable systems.”
Due to the high price tag associated with these devices, manufacturers are teaming up with software companies to illustrate the value of AI PCs. For instance, at its September event, HP showcased collaborations aimed at creating enhanced on-device AI experiences. Lenovo is embedding proprietary AI tools into its PCs, such as Creator Zone and Learning Zone, which further highlight the trend.
For companies like Lenovo and Dell, whose portfolios extend beyond PCs, on-device AI is becoming a vital part of delivering comprehensive AI services. Canalys analyst Kieren Jessop observed this shift, emphasizing how it could impact their strategies.
Meanwhile, Apple isn’t directly competing with Microsoft on this front. Since 2020, Apple has been using its proprietary ARM-based chips in place of Intel processors and is now rolling out devices with the third generation of its M3 chip. This strategic move positions Apple’s offerings as more advanced compared to the standard offerings from traditional PC manufacturers jumping on the Copilot+ trend.
Jessop noted Apple’s unique strategy, highlighting that it is leveraging its tightly-knit ecosystem for features that don’t need to rival Microsoft’s products, like Copilot Pro for Microsoft 365, which already works with macOS. Instead, Apple is focusing on distinguishing itself at the hardware and operating system levels, potentially gaining ground on Windows OEMs during this technology refresh period.