DUBAI: Retail prices of smartphones and computers have seen their biggest recent drop, with some of the latest models now discounted by 30 to 40 percent. Some of the big discounts are due to summer promotions, but retailers are also clearing stock before hot new AI-enabled devices hit the market later this year.
Laptops and tablets (except for the recently launched Apple iPad with the M4 chip) are currently being sold at deep discounts. Even smartphones released this year are being slashed by 10 to 20 percent (depending on whether you buy them in-store or online). Some PC brands are seeing price cuts of as much as 50 percent.
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“Huge discounts could make this the best summer for tech gadgets and smartphones since mid-2020,” the online retailer said. “At the time, there was buzz around UAE consumers upgrading to the latest devices as they work from home and take classes online during the pandemic.
“This summer, retailers are hoping to capture big sales from shoppers willing to wait to upgrade to AI-enabled gadgets. This summer and 'back to school' promotions will be crucial for tech retail in the UAE.”
As far as laptops are concerned, the biggest release over the next few days will be Microsoft's latest product, Copilot, which the US tech giant is positioning as “your AI companion wherever you are.”
Will AI devices cause a surge in sales?
The UAE's tech market last saw its strongest increase in consumer spending on new devices in mid-2020, as residents rushed to upgrade in preparation for the coronavirus pandemic that forced them to work and learn from home. Chip and supply shortages also drove up device prices. Retailers are hoping to see a similar surge in demand for AI-powered gadgets in 2024.
“All tech brands are preparing to launch new PC line-ups that integrate AI capabilities and AI-enabled devices,” said Rajat Astana, chief operating officer at Dubai-based tech retailer Eros Group.
“The UAE market is seeing a real effort to clear old stock ahead of the next big launches, which is great news for tech retailers, as they believe AI will stimulate new demand for device upgrades, providing a new driver of growth.”
How will AI devices be priced?
Tech retail industry sources said PC brands are rushing to make Copilot-enabled devices available in large quantities in the UAE and Gulf markets ahead of the tourist and corporate buying season picking up in September and October, ahead of schools reopening.
Initially, the AI features will make the product more expensive. “Lenovo, Asus and HP have recently announced Copilot-based notebooks priced at more than AED 4,000,” Asthana says. “The Asus Vivobook S15 will be one of the first Copilot notebooks to hit the local market later this month, priced at AED 5,499.”
“PC makers are buying up new high-performance chips from companies like Nvidia, signaling a wave of new devices incorporating AI on a massive scale.”
With its new iPad, Apple has given a glimpse of what AI devices will be like later this year, and the UAE launch of Apple's first AI-packed model has seen strong initial demand, according to retailers.
