Study: Majority of Laptop PCs Sold in 2027 to Feature AI Technology

The era of artificial intelligence (AI) is revolutionizing the world of personal computers (PCs). With the rise of generative AI (GenAI), we are witnessing a new wave of PCs that are capable of leveraging AI technology for enhanced productivity. The global PC market has already seen a normalization in inventory correction and demand weakness, with the impacts of COVID-19 being factored in. This sets the stage for a healthy transformation in the PC industry.

According to Counterpoint, a staggering number of half a billion AI laptop PCs are projected to be sold between 2023 and 2027. This surge in sales is expected to be driven by the replacement demand for AI PCs. Counterpoint classifies GenAI laptop PCs into three categories: AI basic Laptops, AI-advanced laptops, and AI-capable laptops. These categories are based on the level of computational performance, use cases, and efficiency.

While AI basic laptops are already available in the market, they can only perform basic AI tasks. However, starting this year, more advanced AI-advanced and AI-capable models will enter the scene. These models will be equipped with sufficient tera operations per second (TOPS) powered by neural processing units (NPUs) or graphics processing units (GPUs) to excel at advanced GenAI tasks.

William Li, Senior Analyst at Counterpoint, emphasizes the growing adoption of AI-advanced laptops. He predicts that these laptops, which will dominate the AI laptop PC segment, will gain traction in the next two years as chip vendors scale up GenAI capabilities to mainstream tiers. With the proliferation of GenAI use cases in various environments, such as edge computing, cloud computing, and hybrid setups, GenAI will become an essential capability in the PC segment. The development of tools and ecosystems will play a crucial role in facilitating this adoption. Companies like Qualcomm have already partnered with Microsoft, Hugging Face, and other advanced AI Stack toolsets to accelerate the process.

Counterpoint estimates that while the overall laptop PC market will grow at a compound annual growth rate (CAGR) of around 3% from 2023 to 2027, the AI laptop PC segment will experience a remarkable 59% CAGR. The integration of advanced semiconductor content, from compute to memory, will drive an increase in the average selling price (ASP) associated with newer GenAI capabilities. This translates into more value for consumers. Additionally, it is predicted that by 2027, three out of every four laptop PCs sold will have the ability to run advanced GenAI applications.

Chip vendors play a vital role in driving GenAI adoption in PCs. Intel Meteor Lake, AMD Hawk Point, and Qualcomm Snapdragon X Elite series are among the major CPU platforms that will pave the way for the first wave of AI PCs. These vendors are also preparing next-generation solutions for AI laptop PCs, set to be released later this year. This will further accelerate the adoption of AI PCs across different price points. Intel and AMD are expected to compete with efficient ARM-based Qualcomm and Apple solutions in the AI race by mainstreaming GenAI-capable computing next year.

Furthermore, there is a growing trend of AI-capable laptops that utilize high-level to premium-level GPUs. These laptops enable even higher-end GenAI applications, ranging from large language models (LLMs) processed at the edge to advanced large models and autonomous gaming graphics generating (AI Gfx) models. Companies like nVidia are looking to extend their capabilities and leadership in this segment.

The adoption of GenAI in computing initially relied heavily on cloud infrastructure. However, the need for higher computational capability and performance, along with concerns regarding capacity, cost, and energy efficiency, has shifted the focus towards GenAI at the edge or in PCs. Apart from improved work efficiency, data privacy and security are also crucial considerations that can be addressed through GenAI applications at the edge. This is particularly important for preserving data sovereignty and environmental efficiency.

Mohit Agrawal, Associate Director at Counterpoint, highlights the initial adoption of GenAI in PCs by Microsoft. Microsoft’s Copilot AI, deeply integrated across its properties, along with upcoming Windows 12 and partnerships with app developers and companies like OpenAI, Adobe, and Hugging Face, will catalyze the GenAI and overall AI experiences. Initially, the focus will be on productivity and content creation in PCs. The upgrade path and AI capabilities for existing devices that may not support the necessary hardware requirements to run GenAI applications natively remain to be seen.

Apple could also be a significant player in adding GenAI capabilities to Macs. With its end-to-end vertical approach, Apple can leverage its self-designed Arm-based M series processors, optimized macOS, newly designed LLMs, and a powerful GenAI application ecosystem.

The future of PCs lies in the integration of AI technology. As the PC market continues to evolve, AI will become an indispensable feature, driving advancements in productivity, performance, and user experiences. With chip vendors, software developers, and tech giants leading the way, we can expect a new generation of PCs that harness the power of AI to reshape the way we work and interact with technology.

Background Information

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About Adobe:

Adobe is a software company for its creative software suites, including Photoshop, Illustrator, and Adobe Acrobat. They are widely used by professionals in the design, photography, and publishing industries, and their software plays a crucial role in digital content creation and management.

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About AMD:

AMD, a large player in the semiconductor industry is known for its powerful processors and graphic solutions, AMD has consistently pushed the boundaries of performance, efficiency, and user experience. With a customer-centric approach, the company has cultivated a reputation for delivering high-performance solutions that cater to the needs of gamers, professionals, and general users. AMD's Ryzen series of processors have redefined the landscape of desktop and laptop computing, offering impressive multi-core performance and competitive pricing that has challenged the dominance of its competitors. Complementing its processor expertise, AMD's Radeon graphics cards have also earned accolades for their efficiency and exceptional graphical capabilities, making them a favored choice among gamers and content creators. The company's commitment to innovation and technology continues to shape the client computing landscape, providing users with powerful tools to fuel their digital endeavors.

  

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About Apple:

Apple Inc., known for its iconic products, was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976. The company has since revolutionized the technology landscape with innovations like the Macintosh computer, iPod, iPhone, iPad, and more. for its emphasis on design, user experience, and ecosystem integration, Apple's devices and software have made a profound impact on various industries. With a commitment to quality and innovation, Apple remains a global technology leader.

  

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About ARM:

ARM, originally known as Acorn RISC Machine, is a British semiconductor and software design company that specializes in creating energy-efficient microprocessors, system-on-chip (SoC) designs, and related technologies. Founded in 1990, ARM has become a important player in the global semiconductor industry and is widely recognized for its contributions to mobile computing, embedded systems, and Internet of Things (IoT) devices. ARM's microprocessor designs are based on the Reduced Instruction Set Computing (RISC) architecture, which prioritizes simplicity and efficiency in instruction execution. This approach has enabled ARM to produce highly efficient and power-saving processors that are used in a vast array of devices, ranging from smartphones and tablets to IoT devices, smart TVs, and more. The company does not manufacture its own chips but licenses its processor designs and intellectual property to a wide range of manufacturers, including Qualcomm, Apple, Samsung, and NVIDIA, who then integrate ARM's technology into their own SoCs. This licensing model has contributed to ARM's widespread adoption and influence across various industries.

  

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About Intel:

Intel Corporation, a global technology leader, is for its semiconductor innovations that power computing and communication devices worldwide. As a pioneer in microprocessor technology, Intel has left an indelible mark on the evolution of computing with its processors that drive everything from PCs to data centers and beyond. With a history of advancements, Intel's relentless pursuit of innovation continues to shape the digital landscape, offering solutions that empower businesses and individuals to achieve new levels of productivity and connectivity.

  

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About Microsoft:

Microsoft, founded by Bill Gates and Paul Allen in 1975 in Redmond, Washington, USA, is a technology giant known for its wide range of software products, including the Windows operating system, Office productivity suite, and cloud services like Azure. Microsoft also manufactures hardware, such as the Surface line of laptops and tablets, Xbox gaming consoles, and accessories.

  

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About nVidia:

NVIDIA has firmly established itself as a leader in the realm of client computing, continuously pushing the boundaries of innovation in graphics and AI technologies. With a deep commitment to enhancing user experiences, NVIDIA's client computing business focuses on delivering solutions that power everything from gaming and creative workloads to enterprise applications. for its GeForce graphics cards, the company has redefined high-performance gaming, setting industry standards for realistic visuals, fluid frame rates, and immersive experiences. Complementing its gaming expertise, NVIDIA's Quadro and NVIDIA RTX graphics cards cater to professionals in design, content creation, and scientific fields, enabling real-time ray tracing and AI-driven workflows that elevate productivity and creativity to unprecedented heights. By seamlessly integrating graphics, AI, and software, NVIDIA continues to shape the landscape of client computing, fostering innovation and immersive interactions in a rapidly evolving digital world.

  

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About Qualcomm:

Qualcomm, a leading American global semiconductor and telecommunications equipment company, has played a pivotal role in shaping the modern technology landscape. Founded in 1985, Qualcomm has been at the forefront of innovation, particularly in the realm of mobile communications and wireless technology. The company's advancements have been instrumental in the evolution of smartphones, powering devices with their Snapdragon processors that deliver exceptional performance and efficiency. With a strong commitment to research and development, Qualcomm has enabled the growth of 5G technology, paving the way for faster and more connected experiences.

  

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Technology Explained

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CPU: The Central Processing Unit (CPU) is the brain of a computer, responsible for executing instructions and performing calculations. It is the most important component of a computer system, as it is responsible for controlling all other components. CPUs are used in a wide range of applications, from desktop computers to mobile devices, gaming consoles, and even supercomputers. CPUs are used to process data, execute instructions, and control the flow of information within a computer system. They are also used to control the input and output of data, as well as to store and retrieve data from memory. CPUs are essential for the functioning of any computer system, and their applications in the computer industry are vast.

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Snapdragon: The Snapdragon processor is a cutting-edge technology developed by Qualcomm Technologies, Inc. It is a powerful and efficient mobile processor that is used in many of today's smartphones, tablets, and other mobile devices. Snapdragon processors are also used in some computers, providing a powerful and efficient computing experience. Snapdragon processors are designed to provide a high level of performance, while also being energy efficient. They are used in a variety of applications, including gaming, virtual reality, and artificial intelligence. Snapdragon processors are also used in many of today's laptops, providing a powerful and efficient computing experience. The Snapdragon processor is a great choice for those looking for a powerful and efficient processor for their computer.

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