"The HP leader professed himself pleased with what he sees as accelerating demand for the AI-capable PC category, which he said grew in revenue by double digits since the last quarter. "It has surpassed our expectations with shipments continuing to ramp, now reaching over 25 percent of our mix, a quarter ahead of our plan," he chirped. The company had previously said it wasn't expecting PCs with AI pixie dust to reach 25 percent before the end of the year."
"HP sure hopes this is a real trend, and not just some blip in the figures. "We think this is real demand because it's not only happening in the US, we are seeing this across multiple countries and across multiple geographies," Lores told one analyst. "In terms of our projections going forward, they rely on the fact that we continue to see strong demand for AI PCs, strong demand for Windows 11.""
"This is despite the lack of any real killer app that benefits from using the special AI hardware - Intel says an AI-ready PC should have a CPU, GPU, and an NPU (neural processing unit) inside - and HP's admission that AI PCs are costlier than a comparably specified standard PC. "We are seeing an uplift in pricing of AI PCs compared to similar units that don't bring this capability," Lores said, adding that this equates to about a 5 to 10 percent price increase."
HP's Personal Systems revenue rose 6 percent year-on-year to $9.9 billion in the fiscal third quarter ended July 31. Growth was driven by the Windows 11 refresh and increased adoption of AI-capable PCs, with AI PC revenue expanding by double digits since the prior quarter. AI-capable systems now account for over 25 percent of HP's mix, reaching that level a quarter ahead of plan. HP is shifting its product mix toward higher-value segments including AI PCs, commercial premium and services. AI PCs carry roughly a 5–10 percent price uplift and demand appears broad across multiple countries despite limited killer apps.
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