The global laptop market is on the brink of growth, with projections indicating a 4.9% increase in unit shipments, leading to an estimated total of 183 million laptops sold by the year 2025. This optimistic forecast emerges in the wake of a previously stagnant period, as outlined in a report released by TrendForce. The anticipated increase is not primarily driven by the emerging trend of AI-integrated laptops but rather by important factors such as the impending end of life for Windows 10, scheduled for October 2025, and the commercial upgrade cycles prompted by businesses evaluating their technological needs.
According to the report, while 2024 is expected to see a 3.9% year-over-year gain in shipments to 174 million units, the true surge may occur in 2025 as consumers and businesses reassess their technology requirements in light of Microsoft’s official phasing out of Windows 10. Notably, approximately 61% of all Windows installations are still on this older operating system, in stark contrast to the 36% running Windows 11, highlighting a potential wave of upgrades as users seek to stay current with supported software.
Despite significant industry attention focused on AI PCs, these advanced systems have thus far not captured the substantial market share one might expect. They currently carry a price premium of 10-15% compared to traditional models, yet businesses have been hesitant to invest in them, citing a lack of clear advantages at this stage. "Despite the positive momentum, significant work must still be done to convince both channel partners and end customers of the benefits of AI-capable PCs," stated Principal Analyst Ishan Dutt, as reported in Tech Radar. This sentiment underscores the challenges facing the AI PC market, especially as many users grapple with a steep learning curve when it comes to leveraging the technology effectively.
During the third quarter of this year, industry analysis from Canalys showed that AI PCs represented one in five new laptop shipments, with those equipped with Windows Copilot+ capturing over half (53%) of that segment. However, the report emphasises that the broader acceptance and utilisation of AI technology in personal computing still face hurdles.
High interest rates and ongoing geopolitical uncertainties continue to dampen consumer demand in the current market conditions. Industry analysts believe that, with a potential reduction in political uncertainty following upcoming US elections and expected cuts from the Federal Reserve, a conducive environment may emerge that encourages businesses to initiate the upgrades they have been deferring.
As the deadline for Windows 10 looms, companies are likely to be prompted to reassess their technology strategy, which could lead to a significant uptick in laptop sales. Nonetheless, the market's future remains closely tied to the acceptance and integration of AI technologies, the benefits of which businesses are still striving to fully realise.
Source: Noah Wire Services