Revitalization of China's PC market through AI integration
In the horizon of technological advancements, China's personal computer market is poised for significant growth, with AI PCs taking centre stage.
According to the latest forecasts by Canalys, the Chinese market for AI PCs is set to expand by 3% in 2024 and an impressive 10% in 2025. By 2024, 54.7% of new PCs sold in China will be AI PCs, a marked increase from the 8.1% in 2023. This trend is expected to continue, with the proportion of AI PCs in China projected to reach 84.6% by 2027.
The price premium for AI PCs, compared to non-AI PCs with similar specifications, is estimated to be around 10-15%. This premium, however, is not deterring consumers, as the benefits of AI integration in personal computing devices become increasingly apparent.
Major Chinese tech firms like Alibaba, Kingsoft Office, and NetEase are at the forefront of this revolution, developing localized AI apps and large language models (LLMs) for AI PCs. The manufacturer of the first AI-capable PC in China, GEEKOM, unveiled its product on April 1, 2024, in Shanghai. Huawei followed suit with the launch of its ultra-lightweight MateBook X Pro AI notebook, also in April 2024. Lenovo also joined the fray, launching China's first batch of AI PCs in Shanghai during the same month.
The AI PC ecosystem is being enriched with productivity tools, learning apps, and other software tailored for Chinese consumers. This software-hardware integration ensures a seamless user experience, with AI capabilities deeply integrated into the operating system and pre-installed software.
Canalys predicts that AI PCs will become the norm, integrating AI capabilities seamlessly into personal computing devices. This trend is expected to drive premiumization in the Chinese AI PC market, as consumers are willing to pay a premium for the enhanced functionality and user experience that AI PCs offer.
To address data privacy and security concerns, AI PCs process and generate data locally rather than in the cloud. Major chip manufacturers like Intel are investing in hardware-level data protection measures like secure enclaves for AI PCs. Chip vendors are also releasing new AI-optimized chips for the Chinese AI PC market.
The overall value of global PC shipments is projected to grow from USD 225 billion in 2024 to over USD 270 billion in 2028. China's AI industry is projected to reach a market scale of USD 240 billion by 2035, accounting for 30.6% of the global AI market.
While Microsoft's Copilot+ PCs are designed for AI workloads and equipped with unique AI features, they will not be available in mainland China. This leaves the door open for other players in the market to capitalize on the growing demand for AI PCs in China.
As the AI PC market continues to evolve, it is clear that China is at the forefront of this revolution. With local tech giants leading the charge and a growing consumer base eager for the benefits of AI integration, the future of personal computing in China looks bright indeed.
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