Are we seeing a comeback in the global PC market?
The global PC market is witnessing a remarkable resurgence, growing by 1.8% in Q4 2024? Yes, and surprisingly, that’s not the end of it. According to the International Data Corporation (IDC), vendors shipped 262.7 million units in 2024, which is a 1% increase from last year. There was an uptick after a previously tenuous year, but the road to recovery is hardly straight. Upgraded demand for AI-enabled PCs was slower than expected, and there was only a modicum of last-minute demand ahead of Windows 10's imminent termination of support.
Is the timing of this growth coincidental?
The marked change in US administration coupled with the looming threat of new tariffs has thrown a wrench in the gears? Yes, brands have begun adjusting their manufacturing strategies recently to try to mitigate the risk of potential issues. They’re now pulling in supplies from China in anticipation of tariffs on goods made there.
Is AI impacting how we view PCs?
The prominence of AI-enabled PCs is rising? Yes, demand is there, but it is lagging? Yes. The gap between anticipated and actual demand has put a strain on inventory management? Yes, it has. Will they drive up the already sky-high demand for computers? I’d wager a pretty penny.
Who does this affect the most?
Could this have been an amazing raise in demand for tech? It may be. Just the same, there's still a gap to cross between the anticipated and actual demand, one that’s already punishing companies.
Who are the big fish in the sea right now?
Lenovo, HP, Dell, and Apple seem to remain the big boys. Lenovo topped the global shipment chart with over 16 million units sold, snagging about 25% of the total. HP and Dell came in second and third, 19% and 14%, respectively. But there's more to say about Dell - they were impacted by cautious enterprise spending and weaker demand up until recently, yet their enterprise solutions and public sector offerings helped them rebound in Q4 2024. Apple, once at 15% in Q3, now has a sliver of 10%.
What can we expect in the next year?
The global PC market is expected to rebound in 2025? Yes, massively, with the end-of-support for Windows 10 spurring an upgrade to Windows 11 or AI-centered PCs.
Are these advancements in AI a boon or bane for the fintech industry in Asia?
AI is fundamentally reshaping the fintech sector in Asia, not sparing anyone? Yes. It is empowering the collection and analysis of vast amounts of data to make credit and other financial decisions. The likes of platforms such as Bukalapak and Ant Group’s Yu'e Bao are using AI to provide banking services, including loans and wealth management, by leveraging alternative data sources like social media footprints and payment promptness.
Can we expect any improvements in efficiency or security due to these changes? Yes. AI is also enhancing efficiency, security, and inclusion by automating mundane tasks and providing personalized customer service through improved fraud detection.
What does it mean for crypto-friendly SMEs in Europe to delay Windows upgrades?
What happens when crypto-friendly SMEs in Europe put-off upgrades from Windows 10 to the next supported OS? Delaying upgrades from Windows 10 to Windows 11 or a working OS can expose crypto-friendly Small and Medium-sized Enterprises (SMEs) to significant cybersecurity risks. Once Windows 10 reaches its end-of-life on October 14, 2025, it will no longer receive security updates, leaving any newly discovered vulnerabilities unpatched, thus becoming prime targets for hackers, especially in industries handling sensitive data, like cryptocurrency transactions.
What about things like global tariffs?
Geopolitical factors, including US tariffs, will have a considerable influence on both the technology and banking sectors? Yes. For the tech sector, tariffs on tech products could decrease US consumer purchasing power as people start buying less expensive technology. For the banking sector, geopolitics can expose banks to governance, operational, and business model risks, leading to increased IT and cybersecurity threats and affecting operational resilience.
Will supply chain issues happen in the PC market once again?
Both the PC market and fully remote companies face challenges related to rising operational costs and demand fluctuations? Yes. But remote companies face broader logistical and staffing challenges compared to what the PC market has faced.
In summary, the global PC market is growing amidst geopolitical uncertainties. Major companies like Lenovo and Dell are adapting, and the future looks promising with the integration of AI and the end-of-support for Windows 10. The interplay between geopolitical factors and tech advancements will continue shaping the industry, highlighting the need for businesses to remain agile and innovative.
