The Windows 11 Transition: Navigating the End of Windows 10 Support
As the clock ticks down to the end of Windows 10 support, a significant revelation has emerged from PC makers: nearly half of all PCs are still operating on the aging Windows 10 system. Despite the impending deadline, recent earnings calls by industry giants Dell and HP shed light on the ongoing migration to Windows 11, a process that is anticipated to extend well into 2026.
HP’s CEO, Enrique Lores, highlighted the slower pace of the upgrade cycle, particularly in the realm of small and medium-sized businesses where the shift to Windows 11 is still in progress. Notably, some businesses are opting for Microsoft’s Extended Security Updates (ESU) for Windows 10, allowing them more time to transition while ensuring essential security coverage.
According to Gartner’s research director, Ranjit Atwal, budget constraints and perceived lack of compelling benefits are key factors holding back some enterprises from embracing Windows 11. However, the gradual adoption of Windows 11 is expected as businesses leverage the ESU program before making the full switch.
In the midst of this transition, the emergence of AI-powered PCs is making waves in the market. HP reported a surge in consumer and commercial PC shipments, with AI PCs accounting for a significant portion of their sales. Dell, on the other hand, is banking on the PC refresh cycle and the allure of AI-ready devices to drive growth amidst a shifting landscape.
Despite the rise of AI PCs, there remains a substantial number of devices incompatible with Windows 11, creating an opportunity for continued upgrades to Windows 10-compatible systems. The global PC market, as indicated by IDC, saw growth in shipments, albeit with Dell lagging behind Lenovo and HP in the latest quarter.
Moreover, the pricing dynamics of PCs are undergoing a transformation, with HP noting a premium of 5% to 10% for AI-certified PCs compared to conventional models. Tariffs on Chinese imports have prompted PC makers to diversify their manufacturing bases, leading to price hikes that are expected to impact consumers in the near future.
HP and Dell have been proactive in mitigating tariff-related challenges by adjusting their supply chains and production locations. However, as these temporary measures reach their limits, both companies are poised to implement price adjustments to offset the ongoing tariff pressures and maintain profitability.
In conclusion, the impending end of Windows 10 support heralds a period of transition and adaptation for both businesses and consumers alike. The allure of Windows 11 and AI-powered PCs presents exciting opportunities, albeit against a backdrop of evolving market dynamics and pricing pressures. As the tech landscape continues to evolve, strategic decisions around upgrades, security, and pricing will be crucial for navigating the post-Windows 10 era successfully.