Reuters/Steve Marcus
- Consumer demand for AI
- US losing share to China
- Companies cut PC budgets
US technology majors Dell and HP have launched a range of PCs featuring artificial intelligence capabilities.
Industry analysts believe this may help them regain lost market share in the Gulf region and reverse the decline in demand for PCs.
Global PC shipments, including in Europe, the Middle East and Africa, dropped 14.6 percent in the second quarter of 2024, research company Gartner reported.
The reasons are multifaceted: political unrest, inflationary pressures and increased interest rates have dampened demand.
San Francisco-based Gartner analyst Mikako Kitagawa noted that economic uncertainty has caused companies to scale back PC budgets. “Business confidence must increase to influence stronger PC buying patterns,” she said.
However, manufacturers are banking on new technologies being the catalyst that will stimulate consumer appetite.
Vikas Chadha, CEO of Jumbo Electronics, said: “Advancements in technology, such as new graphic cards, chipsets, extended battery life and AI integration have made PCs more appealing to consumers.
“Additionally, the trend toward thinner, lighter and more portable designs continues to attract a wider audience.”
Dell’s AI-enabled products include advanced machine learning capabilities, predictive analytics and enhanced automation tools. At the Consumer Electronics Show 2025 in Las Vegas this week, HP introduced the OmniStudio X all-in-one desktop and the Z2 Mini G1a PC, both featuring advanced AI capabilities.
Chadha said there is a clear appetite for such AI innovations.
“There is a growing demand for AI-integrated PCs across various consumer segments, including students, gamers and professionals,” he said. “In fact, every fifth laptop we sell features AI capabilities, and the AI PC mix continues to grow month on month.”
While consumers may veer towards AI-enabled PCs, and market intelligence company IDC estimated that the sector would account for 10 percent of all PC shipments to the Mena region in 2024, it said it did not expect a dramatic increase in overall shipments.
“It is important to note that vendors are not opening up a new market, just that many of their shipments going forward will have AI capabilities,” said Isaac T Ngatia, a Dubai-based senior research analyst at IDC.
In a December 2024 interview with AGBI, he explained that Dell has traditionally been a “strong player in the desktops market. However, demand for desktops has been declining”.
AGBI reported last month that China’s Lenovo has become the top seller of desktop and laptop computers in the GCC, citing IDC data. Market share has dropped for the US giants HP, Dell and Apple, as well as for Taiwan’s Asus.
Jumbo said about 15 percent of Jumbo’s total notebook sales come from AI-enhanced models and Chadha explained that demand spans enterprise and consumer applications.
“Enterprise clients are increasingly upgrading to take advantage of features like machine learning, predictive analytics and automation to boost productivity,” he said.
“At the same time, individual users are leveraging AI for content creation, gaming and everyday productivity enhancements.”
While the integration of AI could rouse consumer interest, Chadha noted that customer education, training and showcasing AI capabilities would be needed to help companies successfully introduce AI in their product lines.
