The Confusing World of AI PCs: Are We Ready to Upgrade or Just a Bit Confused?
So, let’s dive right into the latest grumbles from the tech brigade! According to a senior analyst from Gartner, the premium price of AI PCs is causing a bit of chaos among customers looking to upgrade their fossilized machines. You know, the ones that wheeze like your granddad after a sprint! Yes, folks, it seems that businesses are playing a game of “will they, won’t they?” when it comes to upgrading their tech before Windows 10 officially bites the dust.
Ranjit Atwal, research director for Gartner’s Quantitative Innovation Team, delivered the delightful news that while businesses are keen on AI PCs, they’re not exactly keen on paying an extra toll for them when the business case is about as riveting as watching paint dry. In simpler terms: customers want AI, but not at the price of their lunch money!
Even heavyweight CEOs like Michael Dell and HP’s Enrique Lores admitted that customers are slower than molasses in winter when it comes to refreshing their old PCs. Apparently, they thought everyone would be throwing their money at shiny new devices like they were at a magic show. Surprise! Turns out, consumers haven’t quite bought the hype – it’s like promising a delicious buffet and serving kale chips instead.
With Windows 10’s support coming to an end on October 25, 2025 — which is only a hot minute away — enterprise IT departments are hoping to wake up from their tech stupor. Dell reminds us there’s a “large and aging installed base.” Read: many of these relics were purchased during the pandemic when everyone was binge-buying like it was Black Friday every day. Alas, that burst of enthusiasm seems to have fizzled faster than a flat soda.
Now let’s talk numbers, shall we? Vendors are eager to push AI PCs which, by some estimates, will cost 5-15 percent more than traditional models. Can you hear the cash registers ringing? IDC forecasts nearly 50 million AI PCs will sashay their way into the market by next year, while Gartner estimates a slightly more modest 43 million units. But, hold your horses — are buyers convinced? Not quite. According to Canalys, AI PCs made up only 20 percent of global shipments in Q3. That equates to 13.3 million computers, but wait — that’s sold into the channel, not handed over to eager customers. Talk about a plot twist!
Atwal, the oracle of Gartner, mentions vendors are shoving AI PCs at prices that could make your head spin. Businesses want to make the leap but are holding out for an AI platform that feels as solid as a rock in terms of future-proofing. And with all the talk of Windows 11 upgrades being the latest buzzword, it sounds a bit like a game of tech musical chairs — and everyone’s afraid they’ll be left standing!
Interestingly, a spokesperson from Dell claimed that AI PCs and Windows 11 are driving the so-called “upgrade opportunity.” And while their stats are impressive, let’s not forget that 30 percent of the 1.5 billion PCs in use today are four years old or more. Those ancient devices couldn’t keep up with the latest and greatest AI advancements if they tried! They’re like trying to run a marathon in flip-flops.
So what do we have? A convergence of old tech lamenting its terrible fate, new tech pleading for acceptance at a steeper price, and consumers caught in the middle. Marco Andresen from Lenovo, the voice of reason, says that the refresh we’re all waiting for stems from a massive purchasing spree in 2021, coupled with the dreaded Windows 10 end-of-support (EOS) situation. It’s like watching a soap opera where everyone is just a little bit confused, and no one’s quite sure who’s upgrading who.
In the grand tapestry of tech evolution, it seems there is a divergence in the force. Will businesses eventually cave and upgrade? Will vendors adjust their AI pricing? Or will we be left in a never-ending loop where everyone stares at their outdated machines hoping for a miracle? Only time will tell. If nothing else, at least we’ll have plenty to laugh about as we buckle up for this tech rollercoaster!
Commentary:
Imagine this: you’re stuck in an ancient PC that’s slower than a snail on holiday. Meanwhile, the shiny new AI PCs are mumbling sweet nothings about the future. Everyone wants a slice of that pie, but when the bill comes, suddenly everyone’s acting like they don’t know the owner. Business leaders and IT departments are waving their arms like they’ve just seen the latest Marvel film, shouting about needing upgrades but hesitating at the price tag.
At the same time, it’s hard not to chuckle at how vendors are gazing longingly at those sales projections, picturing mountains of cash while the consumers maintain a polite ‘not today’ expression. Amid a tech savanna of bewilderment, we ask: will the upgrade stampede happen, or are we all just hoofing around in circles? Keep those seatbelts on, folks; it’s bound to be a bumpy tech ride!
The high premium associated with AI-enabled PCs, coupled with a noticeable absence of compelling applications, is creating a sense of uncertainty for consumers looking to refresh their aging computer systems as the end of Windows 10 support approaches.
This insight comes from Ranjit Atwal, a senior analyst at Gartner, who recently expressed concern in an interview with The Register, noting that many enterprises are still hesitant to finalize their purchasing decisions.
“While businesses are eager to transition to AI-powered PCs, they are reluctant to incur additional costs without clear, compelling business advantages,” explained Atwal, who oversees research for Gartner’s Quantitative Innovation Team.
Tech industry leaders, including Michael Dell and HP CEO Enrique Lores, acknowledged in September that their expectations for consumer purchasing timelines have not panned out as forecasted. Customers are far more cautious and are taking their time to refresh their existing technology infrastructure.
Dell emphasized that with the standard support for Windows 10 set to expire on October 25, 2025, many enterprise IT departments will soon realize that action is necessary to update their systems. Lores highlighted the significant issue posed by a large, aging installed base of equipment, much of which was acquired during the pandemic and is now overdue for replacement.
The estimated average cost of an AI PC is projected to be 5-15% higher than traditional models, prompting manufacturers to aggressively market these advanced systems. Industry analyst IDC predicts that AI PCs will constitute nearly 50 million units in 2024, while Gartner expects to see shipments of approximately 43 million units.
According to a recent Canalys report, AI PCs represented 20% of global shipments in Q3, translating to about 13.3 million computers sold to distribution channels, rather than directly to consumers. However, potential buyers remain unconvinced of the value.
Atwal pointed out that vendors are emphasizing AI PCs at a premium, yet businesses are hesitant, waiting for a robust AI platform that ensures longevity in their technology investments. The introduction of products like CoPilot+ PCs and Recall has further complicated the decision-making process.
Furthermore, the upcoming upgrades to Windows 11 and a general lack of available budgets compound the challenges faced by businesses. Atwal anticipates that significant changes will be necessary by 2025, particularly concerning the pricing strategies associated with AI PCs.
A Dell spokesperson previously commented to The Register about the significant role that AI PCs and Windows 11 are playing in creating new opportunities for upgrades in the PC market. The spokesperson noted that among the estimated 1.5 billion PCs currently in use, approximately 30% are over four years old. Many of these older computers lack the necessary neural processing units (NPUs) to take advantage of the latest AI advancements and do not meet hardware requirements for updating to Windows 11 – a critical factor given the impending end of Windows 10 support.
Marco Andresen, COO of Lenovo’s Intelligent Devices Group, suggested that the push for upgrades is also a response to the remarkable spike in PC sales witnessed in 2021, alongside the looming end of support for Windows 10, compounded by the evolving market for AI PCs.
In summary, the PC industry seems to be on the cusp of significant changes amid a complex interplay of technological advancements and market dynamics. ®
