Techaisle Analyst Insights

The Lenovo ThinkBook 13x Gen 4, launched at CES 2024, is a highly anticipated device that lives up to the hype. This ultra-portable notebook is a testament to the advancements in AI PC technology and showcases Intel's new Meteor Lake Ultra 9H processor and an AI-specific NPU. It offers a compelling package for SMBs, with its unique selling points being its sophisticated design, dual-toned top cover, ultralight portability, the world’s first 13-inch laptop with a 74-WHr battery, and a nice balance between power and style.

My first encounter with the Thinkbook brand was with a Thinkbook Plus Gen 1 in November 2019. The notebook's 'Think' pedigree, focus on the SMB segment, and the unexpected E-Ink screen on the lid piqued my interest. It was an intriguing design. Fast forward to September 2022, and the innovation difference between the Gen 1 and Gen 3 was nothing short of exponential. The ultrawide display on a laptop made multitasking more accessible and allowed users to see more content with fewer distractions. The massive and roomy display is a visual treat, a productivity enhancer, and ideal for Windows 11 snap layout. Straddling the line between business, work, and life, ThinkBook Plus Gen 3 boasted Dolby Vision for lifelike images, blue light reduction, and 2 X 2W Harman Kardon audio for superior sound.

My latest experience with a Thinkbook incarnation, the ThinkBook 13x Gen 4, is a testament to the brand's commitment to mobility. The ThinkBook 13x Gen 4 notebook model I am using features a 13.5-inch, 2.8K HDR400 display with Dolby Vision, making for smooth and vibrant visuals, Anti-Glare, Non-Touch, 500 nits. It also has EyeSafe low blue light certification, ensuring a comfortable and productive user experience. On the audio side, it includes four Harman Kardon speakers with built-in smart amplifiers and Dolby Atmos certification for immersive sound.

Weighing just 2.56 lbs and measuring a mere 0.5 inches thick, the ThinkBook 13x Gen 4 is designed for easy portability. Its thin profile is not a compromise on durability - the ThinkBook 13x Gen 4 is built to endure the bumps and knocks of everyday travel, instilling a sense of reliability and trust. Its aluminum finish and tastefully designed logo give it a look of sophistication that belies its price. The laptop's design ensures it sits comfortably on the lap without feeling top-heavy, making it an ideal companion for flights, daily commutes, or working on a couch in a work-at-home setting. The Lenovo ThinkBook 13x Gen 4 is great for mobile professionals seeking a sleek and portable laptop and users who appreciate a high-quality build. Its combination of performance, portability, and premium design make it a top choice for a wide range of users. It has a Copilot key, which provides the ability to quickly and easily access Microsoft's Copilot AI assistant directly from the laptop's keyboard.

A new type of computer is gaining traction: the Artificial Intelligence-powered PC, or AI PC for short.  At Microsoft Build 2024, Microsoft and its leading PC partners, Dell, HP, and Lenovo, unveiled a new class of laptops, Copilot+ PCs, explicitly built for artificial intelligence (AI).  These laptops are powered by powerful Snapdragon® X Plus processors, exceeding 40 trillion operations per second (TOPS), and deliver long-lasting battery life and access to cutting-edge AI models. 

The personal computer market is undergoing a significant shift, and small and medium-sized businesses (SMBs) and upper midmarket companies are paying close attention.  A recent study by Techaisle, covering 1410 SMBs and Midmarket firms in the US, suggests a potential surge in demand for these innovative machines within these business sectors. 

High Awareness Paves the Way for Adoption

The study reveals a high level of awareness and purchase intention among SMBs and midmarket firms, painting a promising picture of the market potential of AI PCs. A significant 77% of SMBs and an impressive 86% of upper midmarket firms are already familiar with AI PCs, demonstrating a high level of awareness and understanding of the potential benefits of AI technology for their productivity and operations. This awareness is not just passive, as the study reveals that a substantial 32% of SMBs and a much higher 64% of midmarket firms are actively planning to purchase AI PCs, indicating a strong market potential and the confidence these businesses have in the technology. This robust purchase intention signals a significant market shift and underscores the potential for widespread adoption in the near future. Moreover, 40% of SMBs are considering evaluating AI PCs before making a purchase decision, hinting at the possibility of even broader adoption in the coming years.

AI PCs are projected to dent the PC market within 3-5 years substantially. SMBs, known for their agility in responding to market trends, will likely mirror this trend. With 54% of SMBs planning to invest in new PCs in the next 12 months, AI PCs could become a decisive factor in purchasing decisions.

The study also uncovers some intriguing insights into SMB priorities. While 14% of SMBs view AI PCs as a crucial upgrade, and another 12% are considering a strategic shift towards them, a substantial portion (24%) see no compelling reason to adopt this new technology. However, 58% of SMBs report that their employees are actively requesting AI PCs. This highlights a potential disparity between management and employees regarding the perceived benefits of AI technology, suggesting the need for better communication and alignment.

The study identifies potential early adopters of AI PCs within the employee base. These are the content creators, tech-savvy departments, and executives in corner offices. Creative and design professionals top the list (45%), followed by IT development (27%) and sales and marketing teams (26%). These departments will likely benefit most from AI PCs' enhanced processing power and AI-powered features.

Copilot Gains Traction, But Snapdragon Faces Recognition Hurdle

The Techaisle study delves deeper, exploring the potential for Copilot, a new software solution designed to unlock the true power of AI PCs. Awareness is high, with over half (54%) of SMBs and a staggering majority (89%) of upper midmarket firms recognizing the name.  Despite its recent launch, nearly half of these businesses already know about Copilot+ PCs.

However, adoption intent dips regarding Copilot+ PCs powered by Qualcomm's Snapdragon processors. This hesitation stems from a few key factors. Limited brand awareness compared to the established giant Intel is a significant hurdle. Concerns about compatibility with existing applications and potential issues with peripherals further dampen enthusiasm. Many SMBs are adopting a wait-and-see approach, holding out for the announcement of Intel-based Copilot+ PCs, hoping these systems will offer similar features and impressive battery life.

Despite the growing hype around AI PCs, the study reveals some interesting realities regarding PC selection criteria for SMBs. While GPU/NPU might be a consideration, it does not reign supreme. For SMBs, the top five priorities when choosing a PC remain long battery life, a processor with built-in security features, ample storage capacity, a high-resolution display, and biometric login options.

A Techaisle survey of 810 SMBs in the US shows that SMBs would ideally like to see Android applications running on Ultrabooks. Nearly 60% of SMBs that use smartphones have Android based smartphones. On an average, a small business has three Android based smartphones and a mid-market business has 26 Android based smartphones. These SMBs have become used to Android apps and would desire to have the same type of capability within Ultrabook.

Similar desire does not exist for iPhone apps because they do feel strongly that iPhone is a closed environment, whereas Android is open-sourced, hence, a higher likelihood of Android apps becoming available on a PC platform.

Anurag Agrawal
Techaisle

They are here - Techaisle's annual SMB and Midmarket Top 10 IT Priorities, IT Challenges and Business Issues infographics. This is the 7th year of Techaisle tracking at a WW level and is much sought after by IT vendors, channels and media. There is an ongoing trend – in both the buy-side and supplier communities – towards positioning IT initiatives and expenditures in a business context.

To help readers connect positioning with core market drivers, Techaisle research provides insight into the most pressing business issues, IT priorities and IT challenges faced by small (1-99 employees) and midmarket (100-999 employees) businesses in 2018.

For 2018, Techaisle investigated 21 different technology areas, each with several sub-technology categories, 24 different IT challenges and 24 different business issues. At the request of our clients, this year, not only are we releasing data & infographics (shown below) as usual for SMBs (1-999 employee segment), Midmarket (100-999 employee segment) but also for Small businesses (1-99 employee segment).

In 2018, the new and upcoming IT Priorities within SMBs are Virtual Reality (VR)/Augmented Reality (AR) and Hyperconverged infrastructure (HCI). Within midmarket firms, Artificial Intelligence (AI) appears for the first time for 2018. Workplace transformation is one of the new top IT challenges for SMBs – number 1 on the list for midmarket firms and overall at number six across all SMBs. This obviously points to a need for unified workspace experience. In addition, Cloud orchestration and integration are among the top five key IT challenges for both SMBs and midmarket firms.