China’s PC market stumbles in 2024 but finds hope in a late rally

For most of 2024, China’s PC market looked like a struggling football team—losing ground every quarter, failing to gain momentum. But just when it seemed destined for a disappointing finish, Q4 brought a surprising comeback.

Consumer demand rebounded, government subsidies kicked in, and for the first time all year, the market saw a glimmer of recovery. The deep discounts and government-backed incentives drove the final quarter to a strong recovery, growing 8% year over year.

Still, that late push wasn’t enough to erase earlier struggles. Full-year PC shipments fell 4% to 39.7 million units, weighed down by sluggish commercial demand. Desktops took the biggest hit, shrinking 9% to 2.9 million units in Q4, while notebooks managed a 6% rebound, reaching 8.6 million units.

Among vendors, Lenovo remained the clear leader, shipping 13.7 million units for a 35% market share—but even it wasn’t immune to the downturn, with shipments falling 12% from 2023. HP had an even tougher year, posting a 20% decline to 3.4 million units. But there were bright spots: Huawei grew 15% to 4.3 million units, while iSoftStone made the biggest leap, more than doubling its shipments with a 106% surge to 3.4 million units, securing a spot among the top five PC brands.

While PCs struggled, tablets had a much stronger year. Shipments rose 11% to 31.5 million units, led by Huawei, which surged 32% to 8.5 million units and overtook Apple as the market leader. Apple, meanwhile, saw shipments drop 8% to 8.3 million units, while Xiaomi (up 26%), HONOR (up 13%), and Lenovo (up 12%) all capitalized on rising consumer interest. The momentum is expected to continue in 2025, as tablets will now be eligible for the same government subsidies.

One of the biggest shifts in 2024 was the rise of AI-capable PCs. By the end of the year, they accounted for 20% of total shipments, a significant jump from 7% a year earlier. That number is set to rise to 34% in 2025 as companies like Lenovo and HONOR race to integrate AI-powered features into their devices.

Looking ahead, Canalys expects China’s PC market to grow 3% and the tablet market to rise 1% in 2025. If Q4’s momentum carries into the new year, the industry may finally be turning a corner.