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Were organizations snapping up AI-capable computers in Q2 2024?

By DigiconAsia Editors | Friday, August 16, 2024, 4:47 PM Asia/Singapore

Were organizations snapping up AI-capable computers in Q2 2024?

At around 14% of the entire PC market, with not every unit “shipped” leading to an actual sale — probably not

AI-capable computers are defined as desktop PCs or mobile laptops possessing a processor and/or supporting chipset to run AI workloads onboard, without the need to send data to the Cloud for processing.

According to data from market watcher Canalys, 8.8m AI-capable PCs were shipped in Q2 2024. This represented 14% of all PCs shipped in the second quarter, compared to 7% in Q1. Devices running the Windows operating system accounted for just under 40% of such shipments.

Said the firm’s Principal Analyst, Ishan Dutt: “June saw the launch of Copilot+ PCs incorporating Qualcomm’s Snapdragon X chips. While shipment volumes in the quarter were relatively small due to the limited weeks and geographical coverage of availability, the broad commitment of Windows OEMs to adopt these products into their portfolios bodes well for the category’s outlook. In the x86 space, Intel ramped up its delivery of Core Ultra chipsets, reporting strong sequential performance for its AI PC products, while AMD announced its Ryzen AI 300 series of notebook processors in June, with product releases starting in mid-July.”  

Despite various problems and critical bugs in processor designs by Intel, Qualcomm and AMD, “the market performance of AI-capable PCs has largely aligned with expectations, and the industry remains on track to ship around 44m units in 2024 and 103m units in 2025, according to Canalys forecasts,” Dutt concluded.

Apple’s entry into the segment has been delayed until Spring 2025, possibly due to more caution over ongoing doubts and concerns and processor manufacturer woes.

Even the recently-launched Copilot+ PCs were involved in an incident where a UK data watchdog questioned the manufacturer over a new feature that can take screenshots every few seconds  — a potential privacy violation. In totality, the various incidents may take a toll on the take-up rate of AI-capable computers in the next two quarters, according to social media chatter.

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