These devices, equipped with the ability to independently execute convoluted artificial intelligence algorithms, are expected to have an increasing impact on overall PC sales, despite confined availability this year, they added.
According to the consensus of three industry analysts surveyed by MintPC shipments are expected to stabilize this year after withering 6% in 2023. However, the growing adoption of AI-powered PCs tailored to Microsoft’s specifications could result in PC shipments increasing by 5% and revenue growth by as much as 15% until December 2025.
Laptops dominated PC sales with a 75% share
Data from market researcher IDC showed that December 2023 shipments of PCs, including tablets, were 13.9 million units. Laptops dominated PC sales with a 75% share. With an average selling price of $900 (~ ₹75 thousand), this translated into net revenues exceeding USD 9.5 billion.
Also read: Microsoft unveils ‘Copilot+’ AI-enhanced PCs to compete with Alphabet, Apple; premiere scheduled for June 18
According to estimates, laptop shipments alone could exceed 11.5 million units by December 2025, driving net revenues to nearly $12 billion, a 26% boost in just two years.
Analysts attribute much of the projected growth to the introduction of Microsoft’s artificial intelligence PCs. These devices, marked as “Copilot+ computers”, will be equipped with a dedicated AI co-processor, i.e. a neural processing unit (NPU), increasing processing capabilities.
While Microsoft will initially launch Surface-branded laptops, third-party adoption is inevitable given that industry giants including Dell, HP and Lenovo are poised to launch Copilot+ PC laptops as early as next month.
Also Read: Microsoft CEO Satya Nadella Downplays OpenAI’s Importance, Says: ‘We Have It All’ Amid Closed Source Data Controversy
AI computers offer offline support for tasks including file restoration, generative image editing, and local search queries. Yusuf Mehdi, Microsoft’s executive vice president and chief marketing officer, said in a recent blog post that AI features will “remove previous limitations on issues like latency, cost, and even privacy to support you be more productive, imaginative, and more effective.” communication.”
However, despite the potential, analysts warn that initial rollout may be ponderous due to the higher price tag compared to standard laptops. “The novel batch of equipment will be more steep than the average market price of laptops in India. This, in turn, would mean that growth may be ponderous initially and any major impact in India is likely to be seen only next year,” said Navkendar Singh, associate vice president at market research firm IDC India.
“Ultimately, this will certainly have a positive impact, but there will likely be a lot of extensive marketing effort put into explaining the benefits of AI capabilities to users – before their apply gains momentum. Ultimately, Microsoft will begin to apply Apple’s hardware capabilities, especially in the case of the latter’s MacBook Air series laptops,” he added.
Also read: India at par with the world in implementing artificial intelligence: Satya Nadella
Ultimately, Microsoft intends to challenge Apple’s dominance in the consumer laptop market, especially the MacBook Air series, which starts at $1,200 in India.
The three industry analysts cited above said Microsoft is largely focused on Apple’s MacBook Air lineup – a factor that Nadella also highlighted in his interviews this week.
In an effort to compete with Apple’s M3 processor, which boasts 18 trillion operations per second (TOPS) in AI performance, Microsoft specifies at least 40 TOPS for its Windows-based AI laptops.
Analysts expect this distinction, combined with Windows’ broad market reach, will enable brands like Dell, HP and Lenovo to offer competitive prices, potentially changing the landscape of consumer laptop preferences.
Posted: May 22, 2024 9:11 pm EST
