The growing demand for artificial intelligence (AI) hardware is pushing up personal computer prices and making laptops increasingly unaffordable for Filipino consumers, forcing many buyers to postpone purchases even as demand for computing devices remains strong, according to Lenovo Philippines country general manager Michael Ngan.
In an interview with the media, Ngan said the PC industry is facing rising component costs, supply constraints, and a shift toward higher-end AI-capable devices that are driving up prices across consumer and enterprise computing products.
He cited the example of laptops that previously sold for around P50,000 but now cost more than P80,000, representing an increase of roughly 60%.
The price increases have been even more pronounced in enterprise computing, with Ngan claiming that server prices have surged by as much as 300% over the past 12 months.
Ngan acknowledged that the price increases are widening the digital divide, particularly among consumers who can no longer afford devices that were previously within their budgets.
“You’re right, there’s a digital divide because of the affordability,” Ngan told reports during the sidelines of the 3rd Lenovo Leaders Circle Gold Invitational at The Orchard Golf and Country Club in Dasmarinas, Cavite.
The Lenovo executive attributed part of the problem to the technology industry’s increasing emphasis on AI hardware, which has encouraged chipmakers to prioritize higher-margin processors and devices over entry-level products.
Ngan pointed to Intel’s reported supply constraints and the growing demand for AI-capable processors as factors contributing to the shortage of more affordable computing components.
He also questioned whether entry-level computers necessarily need AI capabilities, suggesting that the industry’s focus on AI is contributing to higher prices for ordinary consumers.
While AI PCs are being promoted as the next major development in personal computing, Ngan said the industry’s shift toward more powerful processors could eventually leave consumers with fewer low-cost options.
He cited the gradual disappearance of older entry-level processor families, such as Intel Celeron and Pentium, and raised the possibility that lower-end Core processors could eventually face a similar fate.
Despite the rising prices, Ngan believes demand for PCs has not disappeared. Instead, consumers are postponing purchases until they can afford the higher costs.
“For the consumer side, I don’t think there will be a decrease. There will just be a delay in the purchase,” he said.
“They want to buy. They can’t afford to buy now. But they will buy eventually.”
Ngan noted that many computers purchased during the Covid-19 pandemic are now approaching their replacement cycle, creating demand for new laptops and desktops.
However, the expected replacement wave has yet to translate fully into unit sales because of affordability concerns.
He cited market data from GfK showing a decline in PC purchases, although he maintained that the figures reflected deferred buying decisions rather than a fundamental decline in demand.
Lenovo also observed weaker-than-expected laptop sales ahead of the reopening of classes in June, traditionally a period when parents purchase computers for students.
Corporate customers are facing similar pressures.
According to Ngan, some companies are requesting additional budgets to cover higher PC prices, while others are postponing equipment refresh cycles or limiting purchases to essential devices.
Businesses may also decide to retain existing monitors and other peripherals rather than replace entire computer setups.
Software compatibility and the end of support for older operating systems, however, could eventually force companies to upgrade their equipment despite higher costs.
Ngan said PC prices are unlikely to decline before the end of 2026, although the outlook for next year remains uncertain.
“What I know is up until December, it will not go down. At least until December,” he said.
The continued increase in prices has also created an unusual situation for PC manufacturers, with revenue rising even as the number of units sold comes under pressure.
“For our revenue, definitely it’s skyrocketing. So, no problem in revenue,” Ngan said, while acknowledging that unit sales remain a challenge because computers have become more expensive.
For Lenovo, the situation has prompted a greater emphasis on higher-value businesses, particularly servers, hybrid AI infrastructure, and professional services.
“For me, there’s nothing we can do with the rising price of the PCs and the laptops,” Ngan said.
“I’d rather just protect this business for now. And then, focus on where probably it really matters today, which is driving more revenue sales that’s coming from our infrastructure business.”
Lenovo is also promoting its TruScale subscription-based model, which allows enterprise customers to obtain computing infrastructure, devices, and professional services without making large upfront capital investments.
Under the arrangement, companies pay recurring fees for the technology and services they use, potentially reducing the initial financial burden of deploying AI systems.
Ngan said many Philippine enterprises remain cautious about AI investments because they are uncertain about the technology’s potential business benefits and the cost of implementation.
Lenovo has been working with industry partners to offer AI solutions tailored to specific applications, including fraud detection in banking, warehouse automation, manufacturing, and logistics.
He said financial services firms were among the earliest adopters of enterprise AI, while interest from telecommunications, manufacturing, and logistics companies has been increasing.
However, Ngan emphasized that businesses should evaluate AI investments based on measurable outcomes rather than simply adopting the technology because of industry trends.
