A fifth of all PCs shipped within the third quarter of 2024 have been geared up to assist synthetic intelligence (AI), Canalys has reported in its latest PC market report. The Canalys knowledge exhibits that AI-capable PC shipments hit 13.3 million within the quarter, accounting for 20% of all PCs bought.

The analyst agency defines AI-capable PCs as desktops and notebooks that embody a chipset for devoted AI workloads, comparable to a neural processing unit (NPU). 

Canalys reported that Home windows gadgets accounted for a majority of AI-capable PC shipments for the primary time, capturing a 53% share. What is important is that these Home windows-certified gadgets, often called Copilot+ PCs, are based mostly on the Qualcomm Snapdragon ARM-based chip relatively than an x86-compatible processor from the likes of Intel or AMD.

Discussing the information, Canalys principal analyst Ishan Dutt stated: “Copilot+ PCs geared up with Snapdragon X collection chips loved their first full quarter of availability, whereas AMD introduced Ryzen AI 300 merchandise to the market and Intel officially launched its Lunar Lake collection. Nevertheless, each x86 chipset distributors are nonetheless awaiting Copilot+ PC assist for his or her choices from Microsoft, which is anticipated to reach this month.”

Whereas the Home windows 11 refresh cycle and processor roadmaps will proceed to drive penetration, nonetheless, Canalys believes there could also be a reluctance to purchase the brand new expertise, which is designed to offer on-device AI.

“Regardless of the constructive momentum, vital work should nonetheless be executed to persuade each channel companions and finish clients of the advantages of AI-capable PCs,” stated Dutt. “That is very true for extra premium choices, comparable to Copilot+ PCs, which Microsoft requires to have a minimum of 40 NPU TOPS [trillions of operations per second] alongside different {hardware} specs.”

There’s a sense that these gadgets look like concentrating on the premium finish of the PC market. As an example, even with Black Friday offers, Currys’ least expensive AI-capable gadget is presently an HP OmniBook X 14in laptop computer Copilot+ PC, which is on sale at £799, diminished from £999. The costliest is a £2,149 Microsoft 15in Floor laptop computer Copilot+ PC. Nearly all of the gadgets listed are over £1,000, which can put them past the finances of many organisations.

In actual fact, slightly below a 3rd (31%) of PC resellers don’t plan to promote Copilot+ PCs in 2025, in response to Canalys, whereas an extra 34% anticipate such gadgets to account for lower than 10% of their PC gross sales subsequent yr. “With Home windows 10 finish of assist now lower than a yr away, the approaching quarters symbolize a essential alternative to drive a good portion of an aged put in base to be upgraded to an AI-capable PC,” Dutt added.

Given the premium these AI-capable gadgets command, Canalys famous that producers are working with software program corporations to assist them sell the benefits of AI PCs. As an example, at its Think about AI occasion in September, HP showcased its collaboration with software program suppliers to ship on-device AI experiences. Lenovo, in the meantime, has centered on embedding proprietary AI instruments and brokers into its PCs, comparable to Creator Zone, Studying Zone and Lenovo AI Now.

“For distributors like Lenovo and Dell, whose choices prolong past PCs, on-device AI can be a key element of the supply of broader, extra holistic AI companies and options,” stated Canalys analyst Kieren Jessop.

The Canalys knowledge additionally reveals how Apple is just not immediately competing with Microsoft. Since 2020, Apple has shifted away from using Intel processors to its personal chips based mostly on ARM structure. It’s now delivery gadgets with the M3 chip, the third technology of so-called Apple “silicon”. This probably makes Apple gadgets operating ARM-based {hardware} a extra mature providing than the mainstay of PC producers, which have jumped on the Copilot+ bandwagon.

“Apple’s strategic strategy on this panorama is distinct,” stated Jessop. “It’s leveraging its vertically built-in ecosystem to create options that don’t must immediately compete with Microsoft’s suite of productiveness instruments, comparable to Copilot Professional for Microsoft 365, which is appropriate with macOS. Apple can as a substitute focus its differentiation on the {hardware} and working system degree, positioning itself in opposition to Home windows OEMs [original equipment manufacturers] in an effort to make market share positive aspects throughout the ongoing refresh cycle.”