UAE shoppers are being enticed with some of the most significant discounts on tech devices in recent years. However, the question remains: will they buy now or wait for the forthcoming AI-enabled devices set to hit the market in the coming weeks?
Retail prices for smartphones and PCs are witnessing substantial reductions, with discounts ranging from 30-40% on even the latest models. This heavy discounting is partly due to summer promotions, but it’s also a strategic move by retailers to clear out their inventory before the high-profile AI-enabled devices arrive in the latter half of the year.
Currently, notebook PCs and tablets (excluding the recently launched Apple iPad with the M4 chip) are being offered at steep discounts. Even smartphones released this year have seen price cuts between 10-20%, depending on whether they are bought in-store or online. Some PC brands are offering discounts as high as 50%.
An online retailer mentioned that these heavy discounts could make this summer the best one since mid-2020 for tech gadgets and smartphones. Back then, UAE consumers were upgrading to the latest devices for work-from-home and online schooling during Covid.
Retailers are hoping to capture significant sales from shoppers who might want to wait before upgrading to AI-enabled gadgets. This year’s summer and ‘back to school’ promotions will be crucial for UAE tech retail.
The most anticipated releases in the notebook PC category will be Microsoft’s new ‘Copilot,’ an AI companion that integrates seamlessly into users’ workflows.
In mid-2020, the UAE tech market experienced a significant rise in consumer spending on new devices, driven by the need to prepare for work or study from home due to Covid-19. Device prices were also higher because of chip shortages and supply constraints. Retailers are hopeful that 2024 will see a similar surge in demand for AI-powered gadgets.
Rajat Asthana, Chief Operating Officer at Eros Group, a Dubai-based tech retailer, said that all tech brands are preparing to launch new PC lineups that integrate AI capabilities and AI-enabled devices. In the UAE market, there is a serious effort to clear old inventory before the next big launches. This is great news for tech retailers as AI is expected to stimulate new demand for device upgrades and be the new driver of growth.
Tech retail industry sources indicate that PC brands are working to ensure that Copilot-loaded devices are readily available in the UAE and Gulf markets ahead of school reopenings and through September and October, aligning with the tourist and corporate buying season.
