Apple vs. HP: The Battle for PC Market Dominance—Which Stock Should You Buy?

Updated: May 20, 2025 12:34

As the PC market around the world prepares for a 2.1% year-on-year shipment increase in 2025, investors are closely monitoring Apple (AAPL) and HP (HPQ) to see which of the two giants is the better investment. As AI-powered PCs take the spotlight and Windows 10's end-of-service is set to arrive in October 2025, both giants are preparing for the future. But which of the two has the advantage in terms of innovation, market share, and profitability?

1. Apple's Strengths: Innovation and Premium Appeal

Apple's Mac division is performing well on the back of robust demand for the M4, M4 Pro, and M4 Max chips.
The latest MacBook Air featuring the M4 chip provides up to 18 hours of battery life as well as a 12MP Center Stage camera.
Apple's market share increased to 8.7% in Q1 2025 on 14.1% year-over-year increase in shipments.
The Mac Studio with M4 Max and M3 Ultra chips is bolstering Apple's top-of-the-line computing portfolio.
Apple Intelligence is growing worldwide with macOS Sequoia 15.4 releases, with support for several new languages.

2. HP's AI-Powered Strategy: Betting Big on the Future

HP is betting big on the future of AI PCs, predicting that 40-60% of all PCs will be AI-enabled over the next three years.
HP has introduced several AI-driven PCs to ride this wave.
HP’s market share reached 20.2% in Q1 2025, with shipments growing by 6.1% year-over-year.
HP’s Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $3.39 per share, reflecting a 0.3% increase.

3. Market Challenges and Risks

Apple benefits from strong brand loyalty and premium pricing, but faces competition from AI-driven PCs.
HP is vulnerable to U.S.-China tariff risks, which could increase production costs and impact profitability.
Global PC market to expand at 0.4% CAGR from 2025 to 2029, totaling 422.6 million units by 2029.

4. The Verdict: Which Stock is a Better Buy?

Apple's innovative technology and growing Mac lineup put it in a strong position.
HP's AI strategy could drive long-term growth, but geopolitical threats are a concern.
Investors must balance innovation against market risks before making an investment decision.

Sources: MSN

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