With the Windows 10 end-of-life deadline now firmly on the horizon, many businesses and individuals will be potentially looking to buy new PCs and upgrade to Windows 11.
But perhaps surprisingly, some major computer manufacturers aren’t so sure about releasing these new devices.
Dell Technologies chairman and CEO Michael Dell was reported as saying the refresh wave “has been delayed for sure” (via TheRegister) as a number of factors, from economic uncertainty, only just upgrading to Windows 10, and hardware incompatibility all blamed.
Windows 11 refresh
Dell noted, “first of all we have a certain date with Windows 10 end-of-life and we're almost within a one year window of that, and as you get in that one-year window, the enterprise IT people start screwing around and saying, 'Oh, we better do something about this'.”
HP CEO Enrique Lores also chimed in on the looming refresh wave while speaking at the recent Goldman Sachs Communacopia + Technology conference, stating, “First of all there is a large and aging installed base on PCs. Many of these PCs were bought during COVID and now we are four [or] five years after they were bought and they will have to be replaced.
"We also see an opportunity driven by the Windows 11 refresh that is only starting now… this is what is behind some of the strength that we see on the commercial side. Microsoft… will start discontinuing their support for the previous versions, and this always ties the replacement and upgrade,” Lores added.
However, one of the biggest drives in upgrades is expected to be AI PCs, with both CEO’s expecting an uptick in sales in the future, although it’s possible that it may not happen this year at least. Speaking on AI tools for PCs, Michael Dell said, “Everybody's going to want that. Every piece of software that you're going to use is going to have an AI assistant. You're already starting to see this. And most of those AI cycles are going to run locally on the PC.”
“And this is just another piece of a long cycle that has been going on for a long time where you want your PC to do more than it did before. That's why you replace it… we're definitely confident that the refresh is coming,” he continued.
“I have not met any customers who have said 'We're planning a refresh but we don't want an AI-enabled PC.' It's sort of a question of what is the cost. What does it come with? Where is 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 account for a five to 10% increase in average sales prices and that half of all shipments will be AI PCs within three years, with Lores citing several advantages of AI PCs such as using AI on prem rather than through the cloud, which will reduce costs in the long run.
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