AI-Capable PCs: Apple Leads, Windows Gains, Market Grows

Microsoft introduced AI-capable PCs earlier this year, and the market is responding. Shipments of Windows-based AI PCs saw a significant 127% increase in Q2 2024, as per a report. Despite this growth, Apple remains the dominant player in this space, thanks to its entire Mac portfolio’s integration of M-series chips with the Neural Engine.

According to Canalys, Apple currently holds 60% of the market share, followed by Windows at 39% and ChromeOS at 1%. The research firm also noted that the announcement of Apple Intelligence has provided more clarity on AI use cases for Mac. Although still in the developer beta stage in the US, these AI features will be compatible with most existing Macs, significantly expanding Apple’s user base for AI experiences.

Within the Windows space, Lenovo emerged as the top PC shipments vendor globally, contributing to the 127% sequential growth in AI-capable PC shipments. Lenovo’s Snapdragon X-powered PCs, like the Yoga Slim 7x and ThinkPad T14s, helped boost the AI-capable share of its total Windows PC shipments to around 6% in the quarter.

Ishan Dutt, a principal analyst at Canalys, highlighted the growth boost AI-capable PCs have provided for PC OEMs, particularly within their premium offerings.

Performance of Major Players

Lenovo witnessed a remarkable 228% sequential growth in its AI-capable PC shipments. HP achieved around 8% AI-capable PC share within its Windows shipments, driven by the launch of the Omnibook X 14 and EliteBook Ultra G1 Snapdragon Copilot+ PCs. Dell captured just below 7% of its Windows shipments represented by AI-capable PCs, with the launch of Copilot+ PCs across its XPS, Latitude and Inspiron lines, albeit with staggered availability.

Dutt expressed optimism about the future, stating that AI-capable PC shipments are set to gain further momentum in the second half of 2024, with processor vendors and OEMs targeting a broader customer base through new product categories and more accessible price points.

Market Growth and Future Projections

A total of 8.8 million AI-capable PCs were shipped in Q2 2024, accounting for 14% of all PCs shipped in the quarter. This suggests a significant increase in device availability and user adoption in the latter half of 2024 and beyond. Canalys forecasts project shipments of around 44 million units in 2024 and a substantial 103 million units in 2025.

The second quarter of 2024 marked a significant step in the expansion of AI-capable PCs, with the market poised for continued growth and innovation in the coming years.