Tracking Market Conditions

The AI PC Market: Slow U.S. Adoption and Dell’s Focus on AI Servers Signal a Long Road Ahead

How many times did Dell mention “AI PC” in its latest earnings conference on 29 August 2024?  Not once. That was down from four mentions three months earlier.  Combined with Intel’s dismal quarter, this means the AI PC is not here yet. There may be great traction for Lenovo and Asus in the Asian markets, […] Continue reading below.
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How many times did Dell mention “AI PC” in its latest earnings conference on 29 August 2024?  Not once. That was down from four mentions three months earlier.  Combined with Intel’s dismal quarter, this means the AI PC is not here yet. There may be great traction for Lenovo and Asus in the Asian markets, but in the US, we’ll have to wait for another year or so. In fact, HP predicts half of PCs will be AI PCs by 2027. What is unclear in this statement is whether the rise of AI PC by 2027 will be driven by consumer excitement or by a normal technological evolution. Continue reading below the video...

In this evolving tech landscape, the AI PC market in Asia is clearly gaining momentum, with companies like Lenovo and ASUS leading the charge thanks to successful go-to-market strategies. In contrast, the U.S. market remains sluggish, with companies like Dell and HP experiencing mixed results in the second calendar quarter of 2024. While HP is bullish on AI PCs, projecting significant growth by 2027, Dell is more focused on AI servers for the moment, which have shown strong performance and are expected to be a major growth driver moving forward. This divergence highlights the different approaches and market conditions influencing AI adoption across regions.

For IT Asset Disposition (ITAD) companies, these trends underscore the importance of strategic positioning in both the AI PC and AI server markets. As AI servers become more prevalent in data centers, new opportunities will emerge for savvy ITAD providers to handle the decommissioning and resale of these advanced assets, leveraging their expertise in PCs while adapting to the unique challenges posed by servers. Partnerships with cloud providers and investment in specialized infrastructure will be key to capitalizing on these emerging opportunities, particularly as the AI PC market matures and begins to impact the secondary market in the coming years.

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Analyst/Author: David Daoud | Analyst

David Daoud has researched the mainstream IT hardware market since 1996 and expanded into hardware disposition research in 2003. He has spearheaded the creation of IDC’s GRADE certification. Since then, David has been providing consulting and expert advice to companies looking to establish best practice in their IT equipment decommissioning and helped leading ITAD service providers assess demand, understand competition, and forecast what’s to come. David is currently the Principal Analyst at Compliance Standards, which focuses entirely on the end-of-life of IT equipment. He can be reached at 508-981-6937 or at ddaoud@compliance-standards.com
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Analysis: Sage Expands Beyond ITAD, Breaks into the Break-Fix Market

by | Oct 28, 2024 | , , , ,

On October 22, 2024, Sage Sustainable Electronics (Sage) issued a press release via Businesswire to announce its acquisition of an electronics repair firm called Relectro. This acquisition is somewhat unique in Sage’s context because Relectro does not operate in Sage’s traditional ITAD space. It offers board-level and post-warranty repair for devices like laptops, tablets, and mobile handsets, which means that it operates in a stage that precedes Sage’s typical involvement. As such, we perceive this acquisition as a pathway for Sage to expand upstream in the ITAM sector.

Ingram Micro’s ITAD Business at a Crossroads: 2025 Could Be a Make-or-Break Year

by | Oct 4, 2024 | , , ,

I was excited to learn that Ingram Micro (IM) filed for an IPO on the last day of September. Becoming a public company would give us better visibility on how the company is performing, even if its ITAD unit is small in comparison to its core business. The IPO filing by Platinum Equity would pave the way for the return of Ingram Micro to the public market after it left it in 2016. In 2021, Platinum Equity acquired it from previous owner, HNA Group, for $7.4 billion.

M&A: Iron Mountain’s ITAD Acquisitions: A Strategic Move or Risky Business?

M&A: Iron Mountain’s ITAD Acquisitions: A Strategic Move or Risky Business?

by | Oct 1, 2024 | , ,

The recent news stories of Iron Mountain acquiring the Irish firm Wisetek have created a head-scratching moment. As I spoke to a number of executives in the ITAD space, the general reaction has been: Are we seeing another Arrow in the making? However, it would be naïve to believe that the purchase of three ITAD-related entities could in itself spell doom. Iron Mountain certainly has its work cut out in terms of integration, optimization and messaging, but there are plenty of opportunities ahead to properly leverage its three ITAD units.

Lenovo’s Positive AI PC Momentum: Key Considerations for ITADs

Lenovo’s Positive AI PC Momentum: Key Considerations for ITADs

by | Aug 16, 2024 | , , ,

I am impressed with Lenovo’s latest earnings results as it seems to be leading the charge in the AI PC sector, showcasing strong performance. Dell and HP are expected to release their earnings results at the end of the month and we should see whether the Lenovo story is a broad-based market trend or unique to the Chinese company. Lenovo’s latest earnings report highlights strong growth, characterized by a 20% increase in sales, with net income up even more.

Intel & AMD: The Perils of Being Number One and How they will Impact ITAD and Electronic Recycling

Intel & AMD: The Perils of Being Number One and How they will Impact ITAD and Electronic Recycling

by | Aug 2, 2024 | , , ,

In this analysis, we look at two companies that have a major impact on the ITAD sector and its future. The technology that Intel and AMD creates will affect the ITAD sector in numerous ways, including what kind of products will be available for the secondary market and how quickly a refresh cycle takes place. Although Intel has traditionally been the giant in the semiconductor sector, AMD has outperformed it this quarter.

Navigating New Climate Regulations: Impact on ITAD and Strategic Recommendations

by | Jul 30, 2024 | , ,

With the rapidly deteriorating environment and climate, pressure is mounting on global corporations and even small businesses to address their own environmental posture.  Several regulations, passed or are under consideration, aim at forcing companies to be both transparent and make changes in the way they manage their business to lower climate risk.

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