Global PC Shipments See Incremental Growth Amidst Market Challenges
In the third quarter of 2024, the global PC market experienced modest growth, with shipments rising by 1% compared to the previous quarter, according to a report from Canalys. This period marks the fourth consecutive quarter of growth; however, it is noteworthy that shipment volumes remain lower than those recorded in the corresponding quarters of 2022, 2021, and 2020. A total of 66.4 million devices were shipped in this timeframe, with notebooks and mobile workstations constituting the majority, representing four out of every five shipments.
Despite the slight upturn, the growth trajectory has been slower than anticipated. Industry experts speculate that the upcoming end-of-life for Windows 10 may prompt a surge in upgrades. Nevertheless, as the deadline looms only a year away, the adoption rate of Windows 11 remains sluggish, with only 33% deployment among businesses compared to Windows 10's 63%.
Within the competitive landscape, Lenovo maintained its dominance, capturing approximately 24.8% of the market. Trailing behind were HP with 20.4% and Dell at 14.8%, forming the top three market players. Meanwhile, Apple has fallen to fifth place, overtaken by Asus, although potential releases of M4-series Macs later in the year could provide a resurgence for Apple.
Industry analysts are cautiously optimistic about the remainder of 2024. Ishan Dutt, Principal Analyst for Canalys, reported that 54% of surveyed channel partners expect growth in their PC business during the latter half of the year compared to the same period last year. Dutt also pointed out the role of emerging AI-capable PCs as a significant driver for upgrades, suggesting that businesses are keen to equip themselves for future AI applications.
Furthermore, Jitesh Ubrani, an IDC Research Manager, highlighted that premium segments might receive a boost from new AI PCs such as Qualcomm’s Copilot+ and upcoming products from Intel, AMD, and possibly Apple’s M4-based Macs. However, Linn Huang, Research VP, suggested that the proliferation of AI PCs may be slower than expected, with noticeable impacts perhaps not manifesting until 2026.
The upcoming holiday season may provide a well-timed boost for the sector, offering a chance for manufacturers to leverage consumer demand.
AI Drives Cloud Strategy as UK Firms Ramp Up Investments
In a parallel development within the technology sector, artificial intelligence continues to be a pivotal factor in shaping cloud strategies for UK businesses. According to a Red Hat survey, an overwhelming 98% of UK IT managers have marked cloud investment as a priority for 2025, driven largely by the integration of AI technologies. Specifically, 88% of respondents identified AI as a crucial catalyst for increased cloud investments.
However, a skills gap remains a pressing concern, with 81% of survey participants citing deficiencies in data science, large language models, and generative AI expertise. Additionally, 75% expressed worries regarding the scarcity of cybersecurity skills.
UK enterprises are increasingly turning to open source solutions to enhance their AI capabilities, with over half of the respondents (53%) recognising accelerated innovation as the primary benefit. Other advantages noted include cost efficiency (50%) and transparency (43%).
Despite the enthusiasm for cloud investment, businesses face internal challenges primarily due to silos. A staggering 96% of IT managers reported that fragmented teams hinder the adoption of cloud technologies. As organisations strive to improve this dynamic, cloud strategy priorities include centralising management (80%), adhering to security and compliance regulations (78%), preparing for AI adoption (77%), and aligning with business objectives (76%).
Hans Roth, Senior Vice President & General Manager of EMEA at Red Hat, emphasized the importance of transparency in AI models, advocating for an open source approach to enhance modifiability and explainability in enterprise settings.
As the cloud market continues to flourish, with revenues approaching $283 billion midway through 2024, overcoming these challenges could be vital for sustaining its double-digit growth rate. Addressing obstacles like data privacy, energy consumption, infrastructure, and AI model transparency remains crucial for moving forward and maximizing AI-related opportunities.
Source: Noah Wire Services