Arm Targets Over 50% of Windows PC Market in Five Years, Says CEO

Arm Holdings said it aims to capture more than 50 percent of the Windows PC market within the next five years, Reuters news report said.
PC market growth in Q1 2024 Canalys reportThis strategic push comes as Microsoft and its hardware partners prepare to launch a new generation of computers utilizing Arm’s technology. The above chart from Canalys indicates the global PC market growth in Q1 2024.

The demand for Arm’s technology in personal computers surged after Microsoft revealed its ambitious plans to introduce a new line of PCs with artificial intelligence features. These are intended to rival those of Alphabet and Apple.

The flagship Windows operating system will now be compatible with chips designed by Arm, a company renowned for powering the rise of smartphones. If successful, this move could significantly disrupt the PC market, which has been dominated by Intel for decades.

Intel has generated $7 billion in sales from its Client Computing Group (CCG) in Q1 2024. Intel says more than 5 million AI PCs have shipped since the December 2023 launch of Intel Core Ultra processors, supported by more than 100 software vendors. Intel expects to exceed its prior forecast of 40 million AI PCs by the end of 2024.

AMD has generated revenue of $1.4 billion from the sales of processors to PC makers in Q1 2024. AMD sells CPUs, APUs, and chipsets for desktop, notebook and handheld personal computers.

The global PC market in terms of global shipments is forecast to reach 265.4 million units in 2024 and 292.2 million units in 2028 at a compound annual growth rate (CAGR) of 2.4 percent over the 2024–2028 forecast period, IDC said.

“Arm’s market share in Windows – I think, truly, in the next five years, it could be better than 50 percent,” Arm Holding CEO Rene Haas said.

Microsoft is heavily investing in this transition, developing a comprehensive suite of software tools to ensure programs run efficiently on Arm-based chips. “They’ve (Microsoft) gone way beyond anything they had (in developer tools) and they really picked it up in the last couple of years,” Rene Haas said. “They are very, very much committed from a software standpoint.”

This strategic shift mirrors Apple’s success with its Arm-based M Series processors, which have been lauded for their long battery life and high performance. Apple has been selling Mac computers with M series processors for approximately four years, setting a precedent for the industry.

Qualcomm has developed the first Arm-based chip to introduce consumers and businesses to the new Windows-based Arm machines. According to Haas, other vendors are expected to follow suit.

Microsoft has enlisted several device manufacturers, including Asus and Dell Technologies, to sell machines equipped with the Arm-based system, further bolstering the push towards Arm’s dominance in the PC market.

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