The noise around AI in general and AI PCs in particular is quite significant these days, as everyone is trying to take advantage of the buzz word and present their products as AI-capable. Technically, 14% of PCs shipped globally in the second quarter contained a neural processing unit (NPU), formally making them AI PCs, reports Canalys.
The latest CPUs from AMD, Apple, Intel, and Qualcomm contain NPUs. As a result, 8.8 million AI-capable PCs were shipped in Q2 2024, comprising 14% of total PC shipments for the quarter, reports Canalys. As AMD, Intel, and Qualcomm ramp up production of their latest processors with NPUs, analysts believe shipments of AI-capable PCs are poised for rapid growth in the latter half of 2024 and into 2025.
In the Windows segment, AI-capable PC shipments surged 127% sequentially in the second quarter. Lenovo, the world's largest PC maker, introduced its Snapdragon X Elite-based PCs, including the Yoga Slim 7x and ThinkPad T14s, boosting its AI-capable share to about 6% of total Windows PC shipments, reflecting a 228% growth. HP followed closely with an 8% share, launching the Omnibook X 14 and EliteBook Ultra G1 alongside its Core Ultra devices. With just under 7% share, Dell launched Copilot+ PCs across several lines, though availability was staggered.
"A key benefit from AI-capable PCs that has materialized for PC OEMs is the growth boost within their premium offerings," said Ishan Dutt, Principal Analyst at Canalys.
He continued, "Windows PC shipments in the above $800 range grew 9% sequentially in Q2 2024, with AI-capable PC shipments in those price bands up 126%. As the range of features from first- and third-party applications that leverage the NPU increase and the benefits to performance and efficiency become clearer, the value proposition for AI-capable PCs shall remain strong. This is especially important over the next 12 months as a significant portion of the installed base will be refreshed as part of the ongoing Windows upgrade cycle."
Meanwhile, only Qualcomm's Snapdragon X Elite processors comply with the requirements of Microsoft's Copilot+ PCs that need a 45 TOPS NPU. AMD and Intel must ship their Copilot+ platforms, the AMD Ryzen AI 300-series, and the Intel Core Ultra 2-series 'Lunar Lake.' Copilot+ requirements will likely be the standard for AI PCs, so contemporary AMD and Intel processors have an NPU; software developers will likely target Microsoft requirements, so it remains to be seen how many AI PCs shipped today will be AI-capable in a year or two.
Apple currently leads the AI-capable PC market, as all of its M-series chips have packed an NPU since 2020, and by now, there are tens of millions of Macs with a neural processing unit capable of launching AI workloads. However, while Apple's own programs use the company's NPUs, a limited number of third-party programs can take advantage of those units. Canalys believes that the introduction of Apple Intelligence, now in beta in the U.S., is set to enhance AI functionalities for Mac users, potentially scaling quickly once fully launched, given its compatibility with most existing Mac devices.
Analysts from Canalys believe the AI-capable PC market is on track to ship around 44 million units in 2024 and 103 million in 2025. The combination of new product releases, wider price range availability, and growing demand for AI-enhanced features is expected to drive this growth further, solidifying AI's role in future PCs.
