With PC sales falling through 2022, laptop makers at CES 2023 in January leaned on software and services rather than raw hardware power to make new models stand out. HP pushed remote management, IT and support services, while AMD and Intel promised built-in AI engines in their next laptop chips. The idea was that features such as camera tracking, AI effects and concierge support would give buyers a reason to upgrade. This post was first written on 7 February 2023.
The PC industry struggled throughout 2022. Among the major PC makers, only Apple grew its shipments for the year, and laptops reportedly saw the steepest falls.
Key takeaways
- IDC counted 2022 traditional PC shipments down 16.5% to about 292 million units; Apple was the only top-five vendor to grow, by 2.5%.
- At CES 2023, executives from several PC makers said the job for the year was to keep the laptop exciting.
- AMD announced Ryzen AI, its first on-chip AI engine for laptops, based on the XDNA architecture. Intel said its coming Meteor Lake chips would also have AI hardware.
- HP added services to its Omen Gaming Hub and launched the Dragonfly Pro with a live concierge support service.
- Many other makers highlighted software features built on camera tracking and AI.
The backdrop: a falling PC market
After two years of pandemic buying, demand fell sharply in 2022. IDC's figures showed fourth-quarter shipments down about 28% year on year and the full year down 16.5%. Lenovo, HP and Dell all shipped fewer PCs, while Apple's Mac shipments rose for the year, though they also dipped in the fourth quarter.
| Vendor | 2022 shipments change (IDC, traditional PCs) |
|---|---|
| Lenovo | Down 16.9% |
| HP | Down 25.3% |
| Dell | Down 16.1% |
| Apple | Up 2.5% |
| Asus | Down 5.7% |
| Whole market | Down 16.5% |
IDC counts desktops, notebooks and workstations, not tablets.
CES 2023: keeping the laptop exciting
This made for an uncertain backdrop heading into CES 2023, the annual show where technology companies present the products they will release that year. As The Verge reported, PC executives acknowledged the size of the task. Some companies answered with unusual hardware, such as Lenovo's dual-screen, dual-OLED Yoga Book 9i without a touchpad. Others moved away from hardware and the raw power it provides, and emphasised quirkier software capabilities in this year's lineups.
AI engines arrive in laptop processors
AMD announced that some of its new Ryzen 7040 series laptop processors would include its first Ryzen AI engine, based on the XDNA architecture that came from its acquisition of Xilinx. Intel said its forthcoming Meteor Lake chips would also have AI capabilities through a dedicated engine.
This was the start of what the industry later called the AI PC. Meteor Lake shipped in December 2023 as Intel Core Ultra, with its AI engine by then called an NPU (neural processing unit).
HP bets on services
HP unveiled new additions to its Omen Gaming Hub, including integration with Nvidia's GeForce Now cloud gaming service, and new remote management and IT services. It also introduced the Dragonfly Pro, a consumer Windows laptop marketed around its integration with HP's new live concierge support service.
Software everywhere
HP was not alone in this view. Many manufacturers with a strong presence at CES 2023 highlighted software features that use camera tracking and AI. Examples included glasses-free 3D displays from Asus and Acer, and a Razer soundbar that tracks the listener's head to optimise audio. Even Lenovo's Yoga Book, though not a new form factor, was presented as a product driven by its gesture control system.
Why this matters for chip makers
When hardware upgrades stop selling laptops on their own, the processor vendors have to offer something new. The AI engines first shown at CES 2023 were that answer: dedicated, low-power blocks for features such as background blur, noise suppression and eye-contact correction, which would otherwise load the CPU or GPU and drain the battery. They became a standard part of laptop chips from AMD, Intel, Qualcomm and Apple over the following two years.
Frequently asked questions
Why did PC sales fall in 2022?
Mainly because so many people had bought new PCs during the pandemic, combined with weaker economies and high inventory at PC makers and retailers.
What is XDNA?
AMD's AI engine architecture, derived from Xilinx technology, used for the Ryzen AI engine in its laptop processors.
What is HP's live concierge?
A support service HP launched with the Dragonfly Pro, giving owners direct access to technical help.
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