| What: | · 2025 is forecasted to be a strong year for the personal computer (PC) market, with PC shipments expected to grow 4.3% year over year in 2025.[1]
· Technological advancements – like AI and next generation processors – are driving demand. |
| Why: | · Windows 10 is sunsetting in October 2025, prompting commercial businesses to upgrade their systems to support the latest software upgrades.
· The need to replace older PCs purchased during the pandemic, which were impacted by supply chain delays. The semiconductor shortage has resolved, and manufacturers are now able to meet the growing demand for PCs more effectively.
· Many companies will require the latest generation of PCs to fully support their AI initiatives. AI PCs are laptops and desktops with neural processing units (NPUs) that can handle AI tasks like generating content without having to use a cloud server.[2] Notably, AI PCs will represent 43% of all PC shipments by 2025, up from 17% in 2024.[3]
· The rise of remote and hybrid work post-COVID has driven major employers to have powerful, reliable PCs for their employees. |
| Tips for Businesses: | · With the evolution of AI, PCs are moving back from a commoditized asset to a strategic one. Many companies are transitioning from a cash model to a leasing model to take advantage of the operational and financial flexibility in managing their installed base of computers.
· Commercial companies can allocate more capital to their businesses instead of depreciating assets by leasing PCs and other digital tools.
· Leasing can provide savings to businesses as they only pay for a percentage of the PC’s cost during the term of the lease and can help mitigate the costly repairs and downtime often associated with older equipment that may be out of warranty.
· Leasing PCs also allows businesses to transfer many of the risks, costs and administration of disposal to the owner of the equipment.
· Having newer equipment also minimizes the security risks inherent in outdated systems.
· Partnering with the right financial institution, who can provide the best blend of price and flexibility, can be a powerful tool in successful lifecycle management.
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| Quote | “We expect strong projections for the PC market into 2025 and beyond,” Hanzel said. “The acceleration of AI and the development of next generation processors has prompted commercial businesses of all sizes to consider the needs of their employees to stay competitive on a global scale. As a result, we anticipate that many large businesses will lease their PCs rather than buying them to stay current and keep up with the latest hardware and software.” |
Contact Information
Jacqueline Hlavenka-Sansone, 551-337-1662
jacqueline.hlavenka-sansone@wellsfargo.com
About Wells Fargo Equipment Finance
As the #2 bank-affiliated equipment and vendor finance provider in the U.S., Wells Fargo Equipment Finance provides a wide range of equipment loan and lease solutions from small and high-volume standardized financings to large, customized, and highly structured transactions across a broad and diverse customer base. For more information, please visit: https://www.wellsfargo.com/com/financing/equipment-financing/
Opinions and information included in this Advisory are general and not intended to provide specific advice or recommendations for any individual or entity. Contact your banker, attorney, accountant, and/or tax advisor with regard to your individual situation. The author’s opinions do not necessarily reflect those of Wells Fargo Equipment Finance or any other Wells Fargo business
[1] “PC Refresh Cycle and Tablets in Emerging Markets Expected to Spur Demand in Coming Quarters, According to IDC” Source: International Data Corporation
[2] “What Is An AI PC?” Source: PC Mag
[3] “Gartner Forecasts Worldwide Shipments of AI PCs to Account for 43% of All PCs in 2025” Source: Gartner