Lenovo and Honor lead the charge in AI PC sector

Personal computer firms Lenovo and Honor are leading the charge in the burgeoning AI PC sector, integrating DeepSeek services into their latest models and witnessing a boost in sales.

In the fourth quarter of 2024, artificial intelligence or AI-capable PCs accounted for 23 percent of total PC sales, researcher Canalys said. Analysts expected popular AI model DeepSeek, offering low requirements for computing capacity and adoption, will continue to boost AI PCs.

AI PCs debut in China

On Wednesday, Honor released an AI PC 2.0 strategy to "reshape" the PC industry, emphasizing AI's adoption in smart devices, AI agents and cross-device AI services, referring to synchronization among smartphone and computers. Its new AI engine covers learning, decision, chip optimization and smart management.

DeepSeek's integration into Honor's AI PCs enables in-device search, browsing, content creation, and smart control, all without requiring an Internet connection, enhancing data privacy and security. Honor likens these new AI PCs to personalized "autonomous vehicles," highlighting their increased safety and intelligence.

Lenovo, which posted a revenue growth of 20 percent in its latest fiscal quarter ended in December, said last week that it would adopt on-device DeepSeek in all AI PC models. Its AI PC agent now covers 1,700 AI applications, covering medical, law, and education.

Low-cost and high-efficiency DeepSeek, an innovative super AI application, is igniting a strong demand for on-device AI globally. Lenovo, the world's biggest PC maker, is prepared for the arrival of the "AI inclusion tipping point."

Canalys reports that 15.4 million AI-capable PCs were sold in the fourth quarter, representing 23 percent of total PC sales. For the full year of 2024, 17 percent of shipped PCs were AI-capable, with Apple, Lenovo, and Hewlett Packard leading the market.

AI PCs enjoy national subsidy

In China, DeepSeek's compatibility with domestic AI chips has synergized with the national "trade-in" subsidy policy, driving down AI PC retail prices.

Since last year, China has implemented multiple rounds of government subsidies to stimulate consumer spending, with PCs and smart devices priced under 6,000 yuan (US$822) eligible for support. This policy is expected to trigger a surge in PC and phone replacements.

Previously, high-end Nvidia GPUs, often found in AI PCs priced above 10,000 yuan, were the primary choice. But the price has excluded them from the national subsidy program.

Now, with national subsidies in place, Honor's new AI PC, the MagicBook Pro 14, will be available starting from 4,799 yuan from March 4.