PCs are pricier, but users will ‘prioritise’ AI benefits, says Lenovo boss

SINGAPORE – The Asia-Pacific region, like the rest of the world, has been hit by a surge in memory chip prices that has driven up the cost of devices such as PCs and mobile phones, but there is still demand for products enabled by artificial intelligence, a Lenovo executive told The Straits Times.

Mr Amar Babu, president of Lenovo Asia Pacific, said the world’s largest PC maker has already begun passing on some of the cost increases through higher prices.

He said the extent of price increases depends on the product, as memory costs per GB have jumped three to four times.

Mr Babu acknowledged IDC’s projections that rising prices could hit demand in 2026, but said some customers are likely to keep buying AI-enabled products for their gains in efficiency and connectivity.

“If we are able to build in more (AI features), and people see the benefit of using AI, they will find the ability to prioritise it within their budgets,” he said, noting that demand for AI and AI-related infrastructure will continue to grow.

Mr Babu pointed to features such as Lenovo’s “personal AI super agent”, branded as Qira, which was launched at the 2026 edition of the CES technology trade show.

The system will work across devices such as laptops, phones and wearables, in what the firm sees as a step towards making AI more widely accessible and useful in everyday life.

“Qira sees what you see, hears what you hear, and over a period of time, learns to think like you, adapts to your personality, and almost evolves to become your personal AI twin,” Mr Babu said.

“A super assistant, you may call it, that makes you more efficient, makes you more productive, and with some approvals, maybe even start acting like you,” he added.

“That’s how we see AI in devices.”

Data collected in the process will be hosted on the device, instead of on cloud servers, unless permission is given, handing users more control, he said. Popular AI platforms, such as ChatGPT, store data on the cloud by default.

Mr Babu noted that AI has also been increasingly integrated into mass market devices and that half of the devices on offer, including PCs, are expected to be AI-enabled by 2027.

He also observed that prices have become more reasonable as more devices enter the market.

“The standard technology adoption curve that you see is actually happening much faster. A year ago, (AI PCs) were only offered at premium price points,” he said.

“Today, mainstream computers, at reasonably mainstream prices, have AI features. By the later part of this year or early next year, we will definitely see AI becoming a lot more pervasive.”

Government efforts to prioritise AI are helping to drive adoption.

Mr Babu pointed to national strategies adopted by countries such as Singapore, India, Indonesia and Malaysia.

“Governments are enabling and encouraging the adoption of AI because they also see that it is a great way to lift the whole economy,” he said.

Billions of dollars have been committed to the cause, and AI remains a priority amid challenges such as the Middle East conflict, Mr Babu said.

But technology firms are facing a shortage of semiconductors, which speed up processing and allow data storage in items such as PCs and mobile phones, as major chipmakers like SK Hynix and Micron direct resources towards making top-end chips used in data centres to capitalise on the AI boom.

In a February report, IDC said companies with greater purchasing power, stronger supplier relationships and the ability to commit to large-volume contracts will be better positioned to secure memory chips and manage higher prices.

It added that smaller and regional vendors, which operate on thinner margins, would find it increasingly difficult to compete for supply.

The market intelligence firm expects the largest global manufacturers to gain more market share over the course of 2026.

Manufacturers could also opt to reduce the amount of memory in their products through the capacity of components such as random access memory (RAM) chips.

“A phone that might have shipped with 12GB of RAM and 256GB of storage a year ago may now debut with 8GB of RAM and 128GB of storage at the same price point, or worse,” the IDC report said.

“The same dynamic will play out in PCs, where base configurations could see meaningful reductions.”

In November 2025, Lenovo said it was stockpiling memory chips and other critical components, and holding on to component inventories that were roughly 50 per cent higher than usual.

The company warned earlier in 2026 about mounting pressure on PC shipments as it raised prices to offset surging memory costs.

PC makers Dell Technologies and HP have also moved to raise prices, while consumer electronics maker Xiaomi has increased the price of several smartphone models.

Mr Babu said: “The good thing is that Lenovo is a large player. We have strategic relationships and partnerships with suppliers. We have a global supply chain. In these situations, we tend to adapt.

“The pricing challenge is still real, but I think we are well positioned to manage, at least from an availability standpoint.”