Dubai: Lenovo, world’s largest PC manufacturer, expects demand for new computers and replacements to happen by the end of this year, said its general manager for the Gulf.
Mohammad Hilili told Gulf News that the market already hit the bottom last year and this year it is expected to be flat or just around five per cent down compared to last year. Most users have delayed an upgrade but they cannot hold on for so long before facing security and performance issues.
But among the laptop segment, the two-in-one category (tablet with detachable keyboard) is growing and it is expected to continue its growth this year.
After launching its new X1 line-up for business customers — 14-inch Carbon Ultrabook (from Dh5,700), 12-inch Tablet (from Dh5,500), 23.8-inch All-in-One (from Dh5,200) and 14-inch Yoga convertible laptop (from Dh6,200) — Hilili said that the demand for two-in-one segment is increasing despite slowing demand for regular laptops, and that is why most of the investment is going towards this category.
“Many PC manufacturers are focusing less on the segment but we are investing more on the research and development. So, we see this as an opportunity for growth and gain more market share from other manufacturers.
“We expect majority of the users will purchase another PC, motivated by new products and attractive pricing and it is up to the vendors to entice buyers. We are bullish about the industry and will continue to innovate,” he said.
Lenovo maintained its top global rank for 2015 with 20.7 per cent market share despite a 10 per cent fall in year-on-year shipments.
Hilili said that Lenovo’s strategy is to attain 30 per cent market share this year, both globally and regionally, and continue to be “aggressive”.
Fouad R. Charakla, senior research manager at International Data Corporation (IDC) Middle East, Africa and Turkey, said that the market sentiment remains low, but expects to see a delay in the recovery of PC demand.
“Overall, 2016 will experience a further decline on 2015, as growth is only expected to occur in the second half of the year. A slightly stronger recovery is expected during 2017,” he said.
As the growing popularity of smartphones and tablets continues to inhibit demand for PCs, vendors and channels across the region are expected to plan and order cautiously so as to avoid being left with high inventory levels.
According to IDC, commercial demand for PCs in the region is expected to surpass that stemming from home users by the year 2017.
When asked whether the regular laptops are dead, Hilili said that there is still some demand for regular laptops as some customers are not keen on two-in-one devices. The other segment which is growing is the gaming laptops.
He said that Lenovo has launched Y Series gaming laptops in the market and will be launching 17-inch gaming laptops.
