The decline of the PC market has come to an end, and AI has given rise to a new wave of application growth momentum

Source: Tiantian IC

    In recent years, the global PC industry has faced a sustained growth dilemma. However, with the continuous iteration and evolution of generative AI technology, as well as its extension from the cloud to the edge, the close integration and commercialization of AI big models with PC and other devices has become a trend. The industry is generally optimistic that the AI PC market is ushering in new industrial opportunities.

    According to the latest report from third-party data firm Gartner, global PC shipments increased by 0.3% annually to 63.371 million units last quarter, marking the first growth after eight consecutive quarters of decline. Last year, the total PC shipment decreased by 14.8% to 241891 million units, marking the first time since 2006 that it had fallen below 250 million units.

    Gartner stated that global PC shipments rebounded in the fourth quarter of last year, ending eight consecutive quarters of decline, symbolizing that the market has bottomed out. Lenovo, HP, Apple, and Acer all saw an increase in market share compared to a year ago, and are expected to see new growth.

    It can be seen that after two years of decline in the PC market, inventory depletion will end in the fourth quarter of 2023, and with the stimulation of market replacement demand by AI PCs, the PC market is expected to usher in new growth this year.

    Gartner analysts also pointed out that after a significant adjustment, the PC market has reached the bottom of its decline, inventory has returned to normal in the fourth quarter of 2023, and a slight increase in shipments from the previous quarter suggests that supply and demand have finally balanced. However, this situation may still change due to the expected increase in component prices in 2024, as well as geopolitical and economic uncertainties.

    Last quarter, there was little change among the six major PC manufacturers worldwide, with Lenovo, HP, and Dell in the top three, each with their own strengths and weaknesses. Lenovo‘s annual shipment volume increased by 3.2% to 16.213 million units, marking the first growth since the third quarter of 2021, with a market share expansion of 0.7 percentage points to 25.6%; HP grew by 5.6% for two consecutive quarters, with a market share increase of 1.1 percentage points to 20.9%.

    During last November‘s press conference, Guangda expected that the overall shipment volume of laptops this year would remain the same as 2022. However, due to low demand visibility, the subsequent shipment volume still needs to observe the overall economic situation of this year.

    Guangda Chairman Lin Baili is optimistic that with the rapid growth of demand for AI computing power, a new wave of application growth momentum will be driven, and he has an optimistic view of the market conditions related to demand. He previously stated that even though consumer electronics products may appear lackluster, AI is still good, and he is particularly optimistic about the future of the three major products: AI PC, AI server, and AI car electronics.

    Lin Baili also believes that the AI PC market is just starting, which is a good time to invest. Various businesses are still trying, and it is uncertain how much production capacity is needed, but it should be a good opportunity.