Key Takeaway: Arm-based PCs are gaining momentum in the market, promising superior battery life and challenging the traditional x86 architecture dominance. Intel is also adapting to meet changing market demands.
The landscape of the PC market is shifting as Arm-based processors become more prominent, posing a challenge to the long-established x86 architecture. However, this transition is not without its obstacles, as highlighted by Michelle Johnston Holthaus, acting co-CEO of Intel, at the Barclays 22nd Annual Global Technology Conference.
Johnston Holthaus recently raised concerns about retailers facing a high return rate of Qualcomm-powered devices. “Retailers are worried about the high return rate of Arm PCs. Compatibility issues with common applications are a major reason for this,” she explained.
Qualcomm, on the other hand, responded by stating that their device return rates are within industry standards. They anticipate a significant shift towards non-x86 platforms, with 30% to 50% of laptops expected to make the transition in the next five years.
Despite the challenges, Arm-based systems are gaining traction in the PC market. Apple’s M-series processors have played a significant role in driving the adoption of Arm-based client PCs, with Apple holding a notable share in the market.
Intel is actively responding to the changing landscape, acknowledging the increased competition in the market. Johnston Holthaus hinted at the potential entry of MediaTek and Nvidia into the Arm-based Windows PC market by 2025.
Intel has been focusing on enhancing performance and power efficiency to compete with Arm-based rivals. The introduction of a hybrid architecture in their latest processors, combining Efficient-cores with Performance-cores, has shown significant improvements in power efficiency and performance.
Furthermore, Intel is collaborating with Arm to develop low-power SoCs using its 18A process and integrating AI hardware into its processors. The Lunar Lake architecture boasts a fourth-gen NPU capable of delivering up to 48 TOPS, signaling a significant advancement in AI capabilities.
While laptops featuring Qualcomm’s Snapdragon X Pro and Elite chips have been praised for their extended battery life, Intel and AMD’s x86 processors continue to dominate the AI PC market. The shift towards AI PCs is gaining momentum, with Intel and AMD devices gradually receiving support for features like Copilot.
In the third quarter of 2024, AI PCs accounted for 20% of all PC shipments, driven by increased availability. However, consumer interest in AI PCs and GenAI features remains moderate. The upcoming end-of-life for Windows 10 is expected to boost sales, as users transitioning to Windows 11 may opt for AI PCs.
