Everyone in the PC industry is talking about AI PCs, but what defines an AI PC? Opinions differ on this question. For HP CEO Enrique Lores, AI PCs will allow users to run originally cloud-based AI functions at the terminal end. Meanwhile, Lenovo chairman Yang Yuanqing sees AI PCs as possessing user-centric local intelligence, faster computational power, and more natural interactions. Acer chairman and CEO Jason Chen believes that the term denotes a shift in usage patterns from "search" to "ask," and usage patterns will be a more crucial factor than hardware specs in drawing consumer interest.
Generally, AI PCs integrate software and hardware to bring AI functions to individual devices instead of requiring cloud access. This can help reduce data transfer delays while eliminating data security and privacy issues. Furthermore, this will allow more intuitive and individualized designs, with different interfaces tailored for work or entertainment.
Currently, AI PCs remain a fuzzy concept, not just because of its infancy, but also because AI is constantly learning and evolving. Whether AI PCs will spark consumer interest is another question, with most industry experts identifying 2024 as the first year of the AI PC, as momentum is expected to grow in the latter half of 2024.
In Jason Chen's opinion, AI PCs will see a gradual increase in penetration rates, but the extent will be hard to predict, not to mention pinpointing the exact time for a surge in the market: in his own words, "If someone is trying to sell you that AI PCs will explode onto the scene in the third quarter of 2024, they're definitely lying to you."
After two years of inventory adjustments, PC inventories have reached healthy levels of 6–8 weeks. However, with inflation and interest rates remaining high, businesses and consumers alike are treading carefully with purchases. Jason Chen also notes a conservative mindset across the supply chain: even with inventory now at healthy levels, companies are still trying to keep inventories low in case another unpredictable "black swan" scenario suddenly arrives.
Although the PC industry saw less-than-stellar performance in the traditional year-end peak season in 2023, the first quarter of 2024 looks to be more promising: notebook ODM giant Inventec even sees potential for growth in the first quarter of 2024, reflecting how leading notebook brands anticipate a rebound in the market.
During its third-quarter earnings call, TSMC noted early signs of recovery in the PC market. In addition, leading Wintel brands such as Lenovo, HP, Dell, Acer, and Asus predict higher shipment volumes for 2024. Under these winds, AI PCs may provide an additional boost to the recovery; however, as Jason Chen has noted, the key lies in how software is integrated instead of hardware brands and supply chains. In this regard, Microsoft's Copilot will be a crucial component, as all eyes are on how well consumers respond to Microsoft's AI push.
Article translated by Kevin Wang
