The race for AI-ready personal computers is heating up, with expectations of substantial growth in the PC market fuelled by rapidly-advancing artificial intelligence technology. In a report from December 2023, research firm Canalys predicts that the PC market will see an 8% annual growth in 2024 as more AI PCs emerge and people look to upgrade from their COVID-19 pandemic-era computers.
Chipmakers seem to take the biggest piece of this pie with record-breaking growth. Nvidia currently has a market cap of $2.232 trillion and is the third-most valuable company in the world, overtaking giants like Amazon and Alphabet. Advanced Micro Devices, also known as AMD, too broke records with a market cap closing of above $300 billion for the first time in February 2024. Intel is also on the road to recovery with its AI bet on the latest Core Ultra chips.
What Intel's latest AI chips are all about
For users like me and you, what this translates into is more powerful laptops and computers than ever before. According to Akshay Kamath, Director of PC Client Category, Intel India, the chipmaker's Core Ultra processors — launched in December 2023 — represent its biggest architectural shift in 40 years.
These chips come with dedicated AI acceleration capability across the central processing unit (CPU), graphics processing unit (GPU) and neural processing unit (NPU) architectures, which translates into improved battery performance such as up to 40% improved efficiency in day-to-day activity and even up to 25% less power consumption while watching Netflix compared to our previous generation mobile processors.
“The Intel Core Ultra processors also feature support for latest platform technologies Intel Wi-Fi 6E (Gig+) and New Intel Wi-Fi 7 (5 Gig) wireless connectivity, Thunderbolt 4, and Intel Bluetooth 5.4 for LE audio & multi-stream audio for true wireless stereo,” Kamath added.
Intel works with several original equipment manufacturers (OEMs) to help users access this power. According to Kamath, the collaborative process involves providing early access to products, offering reference designs, and tapping into Intel’s pool of over 13,000 engineers in Bengaluru.
“We recognise the importance of a robust go-to-market strategy. Thus, we provide access to a global network of events and platforms, ensuring that Indian manufacturers have avenues to showcase and distribute their products worldwide,” he added.
Acer's goal: AI for all
One of the first manufacturers to implement the Core Ultra chips was Acer, which unveiled its Swift Go 14 laptop along with Intel’s AI-powered processors. The device is priced at ₹84,999 and is available in India in both Intel and AMD configurations.
Harish Kohli, President & Managing Director, Acer India, said the company is also actively expanding its AI product range with a broader selection of models at different price points. “We anticipate that as AI technology becomes more prevalent, it's important that we make AI-ready devices accessible to large masses,” he added.
Kohli also believes that meaningful AI integrations are primarily anticipated in the premium segment, typically priced at ₹80,000 and above in the PC market. “This anticipation stems from the growing availability of laptops equipped with AI-ready software and hardware within this price range. As the market evolves and competition increases, prices are expected to come down, facilitating broader access to AI technology beyond the premium tier,” he said.
Acer’s competitive pricing strategy paired with its proprietary AI software suite, like the Acer AI Zone, is what sets it apart from the industry, according to Kohli. The company’s goal is to ensure that more individuals can experience the benefits of AI, be it for work, gaming, or content creation.
Further, Acer is not limited to laptops or PCs. “Acer's greatest strength lies in our extensive product lineup, spanning a wide array of categories, including tablets, PCs, monitors, desktops, servers, workstations, and consumer lifestyle products,” Kohli said.
Rising market
The market for AI PCs is still very new with only a handful of options available across brands and at a premium price. Canalys believes that Intel’s market dominance can drive more significant AI PC adoption from 2024 onwards. By the end of this year, shipments are expected to reach around 20 million units, capturing over 25% of global PC shipments.
The share is expected to increase to 60% by 2027 and the sector is set to rise at a compound annual growth rate (CAGR) of 64%.
