Analyst firm IDC anticipates a 3.8% year-on-year increase in PC shipments in China’s mainland market for 2024. This growth is attributed to two significant trends: the increasing popularity of AI-powered PCs and a surge in cost-conscious buyers, indicating a recovery from pandemic-related setbacks.
Emerging Trends and Growth Dynamics in China’s PC Market
AI Takes Center Stage: IDC expects AI PCs to claim a staggering 55% market share in 2024, ballooning to a dominant 85% by 2027. This surge aligns with China’s ambitious AI development plans, driving a “diversification trend” in consumer ecosystems as users embrace hardware designed for AI applications.
According to a previous IDC report, prominent manufacturers such as Lenovo, HP, and Acer have plans to introduce AI-powered PCs in 2024. Lenovo has already announced the release of some AI PCs. Intel also aims to integrate AI into over 100 million PCs by 2025, collaborating with Lenovo Group and iQiyi. This shift is significant for China’s PC market and has competitive implications for tech giants like AMD, Intel, HP, Microsoft, NVIDIA, and Qualcomm, all announcing their AI PC and chipset plans.
System Upgrade Cycle: In 2024, a significant PC refresh cycle is expected due to a large number of aging commercial PCs reaching or surpassing the four-year mark. This refresh aligns with the growing need to migrate to Windows 11. As a result, the total global PC market in 2024 is projected to experience a 3.4% growth compared to the previous year.
Budget Savvy Reigns Supreme: “Savvy and independent” users seeking value will prioritize “cost-effective products” that deliver optimal performance at attractive prices. This trend will be further amplified by government and education sectors adopting “centralized procurement” of business and budget-friendly PCs, leading to lower average product prices across the market.
K-Shaped Recovery: However, the growth won’t be uniform. High-performance PCs and slim notebooks are predicted to see stronger gains, creating a “K-shaped trend” where premium segments outperform basic ones. For the first half of 2024, IDC expects a 1.5% increase in PC shipments, with a more robust growth of 5.6% forecasted for the latter half of the year.
Overall, the IDC report paints a picture of a dynamic and evolving Chinese PC market, marked by technological advancements, shifting consumer preferences, and an increasing focus on value-for-money products.
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