One of the world’s largest PC makers still unsure about mass upgrades of Windows 11 devices as demand for AI PCs grows
As the Windows 10 end-of-life deadline draws closer, many businesses and individuals will consider purchasing a new PC and upgrading to Windows 11.
But perhaps surprisingly, some major computer manufacturers aren’t so confident about launching these new devices.
According to Michael Dell, chairman and CEO of Dell Technologies, the innovation wave has “certainly slowed” (via TheRegister) as a number of factors were blamed, such as economic uncertainty, the fact that the software had only just been upgraded to Windows 10, and hardware incompatibility.
Refresh Windows 11
Dell noted: “First of all, we have a certain date when Windows 10 is no longer supported, and it’s almost a year before that happens. And once that year passes, the enterprise IT people start messing around and saying, ‘Oh, we’ve got to do something about this.'”
HP CEO Enrique Lores also weighed in on the looming refresh wave during a speech at the recent Goldman Sachs Communacopia + Technology conference, saying, “First of all, there is a large and aging installed base on PCs. A lot of these PCs were bought during COVID and now we’re four [or] They must be replaced five years after purchase.
“We also see an opportunity that’s being driven by the Windows 11 refresh that’s just starting now… this is what’s driving some of the momentum that we’re seeing on the commercial side. Microsoft… is going to end their support for the previous versions, and that always balances replacement and upgrade,” Lores added.
One of the biggest drivers of upgrades, however, is expected to be AI-enabled PCs, with both CEOs expecting sales to increase in the future, though it’s possible that won’t happen this year. Speaking about AI tools for PCs, Michael Dell said: “Everybody wants that. Every piece of software you’re going to use is going to have an AI assistant. You’re starting to see that already. And most of those AI cycles are going to be done locally on the PC.”
“And this is just another piece of a long cycle that’s been going on for a long time, where you want your PC to do more than it did before, so you replace it… we’re absolutely confident that the refresh is coming,” he continued.
“I’ve never met a customer who said, ‘We’re planning a refresh, but we don’t want an AI-enabled PC.’ It’s a little bit of a cost issue. What do you get? Where’s the software – but the hardware always comes before the software. And so you see the whole industry gearing up…” Dell concluded.
HP also expects AI PCs to drive a five to ten percent increase in average selling price, with AI PCs accounting for half of all shipments within three years. Lores cites several benefits of AI PCs, such as deploying AI on-prem rather than in the cloud, which will reduce costs in the long run.
