Lenovo PH chief says AI boom driving up PC prices

Michael Ngan of Lenovo Philippines reports that the PC industry is experiencing a significant increase in prices, with laptops seeing a roughly 60% rise and server prices surging by as much as 300% over the past year. This escalation is attributed to higher component costs, supply constraints, and a strategic industry shift towards AI-capable hardware, which prioritizes higher-margin processors.

The executive suggests that the industry's focus on AI is contributing to a widening digital divide, as previously affordable devices are now out of reach for many consumers. He questions the necessity of AI capabilities in entry-level computers, pointing out that this emphasis by chipmakers, alongside reported supply constraints for AI-capable processors, is limiting the availability of more economical computing components.

Despite these price increases, Ngan indicates that demand for PCs remains strong, with consumers primarily postponing purchases rather than abandoning them. Many devices bought during the pandemic are due for replacement, creating underlying demand. However, affordability concerns are delaying this replacement wave, affecting both consumer and corporate buying patterns, with prices unlikely to decrease before late 2026.