Windows 11 migration heats up… on desktops

As the countdown to the end of standard support for Windows 10 draws near, businesses are taking proactive steps to upgrade their aging desktop PCs. With less than four months remaining before Microsoft ceases support for this widely used operating system, many enterprises are replacing their older machines, even those that are still functioning well, in anticipation of transitioning to Windows 11.

Surge in Desktop Demand

Recent data from channel analyst Context reveals a notable increase in desktop shipments to enterprise customers across Europe. In the first two months of the second quarter (April and May), distributors and resellers reported a 22 percent rise in desktop sales compared to the same period last year, with revenue from these sales climbing by 17 percent. Senior analyst Marie Christine Pygott attributes this trend to the commercial refresh cycles and the impending end-of-support for Windows 10, stating, “Desktops have been the standout performer over the past six months.” The share of total PC revenues attributed to desktops reached nearly 17 percent in early Q2, marking the highest level in Context’s two-year reporting history.

Germany experienced a particularly robust sales surge, leading to availability constraints in some instances. The UK also saw an uptick in both commercial and consumer desktop sales, while Poland experienced growth in the retail and SME sectors.

Despite the increase in desktop sales, the transition to Windows 11 has been met with some resistance. According to StatCounter, Windows 10 held a 53.9 percent share of the global desktop Windows market in May, while Windows 11 accounted for 43.22 percent. Many customers have been hesitant to adopt the latest operating system, influenced by a slowing economy and hardware incompatibilities, particularly with older machines lacking supported CPUs and TPMs.

However, as the deadline for Windows 10 support approaches, more enterprises are beginning to act. Major PC manufacturers have acknowledged the sluggish pace of the refresh cycle. Michael Dell noted in an earnings call last October that the upgrade process had been delayed, while Dell’s COO Jeff Clarke recently remarked on the traction seen in the refresh cycle, indicating that growth is finally materializing.

HP’s Enrique Lores also highlighted the need for replacement of aging computers, many of which were purchased during the early pandemic years. Despite a lowered sales forecast for the latter half of fiscal 2025, Lores reported strong demand for PCs, particularly in the commercial sector. He attributed the slowing sales forecast to broader economic conditions and anticipated price increases across the industry.

HP CFO Karen Parkhill echoed Lores’ sentiments, suggesting that Windows 11 could still serve as a catalyst for growth in the latter half of the year, contingent on stronger-than-expected demand.

In contrast, notebook sales have seen a more modest increase, with unit sales rising just 2 percent and revenue up by 7 percent in the first two months of Q2. This growth is attributed to a higher mix of AI-ready devices, which have been gaining traction in the commercial space. However, Context notes that the adoption of AI PCs is currently limited by factors such as the absence of a compelling application and higher price points compared to traditional devices.

For now, the traditional desktop form factor appears to be playing a crucial role in facilitating the transition to Windows 11, as businesses navigate the complexities of upgrading their technology infrastructure.

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Windows 11 migration heats up... on desktops