A sneak peek at Dell’s strategic roadmap to dominate in the AI PC era

Amidst the unveiling of Dell’s latest lineup of AI-powered PCs in India, we sat down for a candid conversation with Mr. Raj Kumar Rishi, Vice President and Managing Director of Consumer and Small Business at Dell India. As Dell forays into the dynamic Indian market with a focus on innovation and sustainability, our conversation delved into the strategic vision behind their latest offerings.

Also read: Dell India’s sustainable tech journey with Indrajit Belgundi, from new laptops to old ones

From the integration of AI technologies across the XPS, Alienware, and Inspiron series to the broader implications of AI-driven computing, we explored how Dell envisions these advancements shaping the future of technology adoption in India. Edited excerpts of our interview with Mr. Rishi (and his responses) follow:

Q) Dell’s big play during the launch of its latest devices is around AI-powered laptops, how do you see this changing the market?

Dell: This is just the beginning; the fact is, we are at the start of a big change. The pace of change will depend on how the hardware and software evolve from here. There is cloud-AI-based computing at play, and there will be a need for stand-alone AI PCs and applications. At this point, AI-PCs are making on-device computing more productive and efficient. If you look at use cases, look at how Copilot and how it has opened up so many possibilities. And as the PCs get more powerful, a lot more can be achieved with AI. This is most definitely a transformational development. As IDC predicts by 2027, 60% of all PCs sold will be AI-enabled. As far as Dell is concerned, when it comes to technology, we will always be at the forefront. We have a legacy of being ahead based on our vast knowledge and experience across various IT products and services.

Q) You spoke about Dell being the most trusted brand for the 5th year; however, Dell products are also perceived as being more expensive. How do you compete in a price-sensitive market?

Dell: Price is important; I’d be wrong if I say price is not a factor. However, we will never compromise on quality and the latest technology just to meet a price point. If you see the market, even on e-commerce platforms, we are always on the N and N+1 platforms, ensuring we bring the latest when it comes to technology. We do not want to compromise just to meet a certain price point. And there is a cost factor involved when you stay on the latest technology and platforms. Having said that, when you become the most trusted brand, you have to not only give technology but also deliver value to our customers and we strike that balance to ensure we aren’t charging unnecessary premiums.

Q) You just launched AI-powered laptops today, which are powered by the Intel Core Ultra platform. And the market has other players with the same Intel Core Ultra platform. How would you differentiate Dell when it comes to the “AI” part of the laptop?

Dell: In this industry, it is true for every device; there will be a competing product with similar internals. However, Dell has its own technology and superior design. The robustness of the device speaks for itself. For example, the refresh rate of the display, the audio quality, the display quality, the build quality, and the longevity of the machine, these aspects make Dell products stand out. It also goes beyond the product, the support infrastructure, and the support culture that we have. These things make the difference when it comes to the overall user experience. That’s how Dell products stand out in the crowded market.

Also read: Get ready for the On-Device AI boom in 2024 and beyond

Q) Dell started in India as a direct sales online model and has now gradually gotten into retail outlets, multi-brand stores, and also online space with Dell laptops available across popular online retailers. So, what’s the strategy and focus when it comes to sales channels?

Dell: It is the time for an omnichannel strategy. We need both offline and online models. On the online retail channel front, we work closely with partners like Amazon India. We work with them as strongly as we work with our own dell.com direct sales engine. We leave the choice to the consumers. We have a very efficient Dell.com engine where consumers can come and shop directly from us. But then some consumers prefer to buy from multi-brand online retailers like Amazon. For offline consumers wanting to buy from Croma, Reliance, or Vijay Sales, we are there as well. And we also have our 600-odd Dell stores, where we closely manage the stores and give consumers hands-on experience before they buy. So, as I said, we leave the choice to consumers when it comes to buying PCs.

Q) The Dell Inspiron 14 Plus, that you announced today. It has jumped substantially when it comes to price points. However, Inspiron was associated with affordability, how do you see the ₹105,999 starting price for the Inspiron 14 Plus being received by prospective consumers?

Dell: While the overall Inspiron series starts at around ₹40,000 price point, you are right the Inspiron 14 Plus with the Intel Core Ultra processor that we announced today starts at ₹105,999. If you look at the overall price trends over the years, the average selling price as per GFK data, has gone up. Especially during the pandemic, people wanted more performance from their PCs, given that you are multitasking, you aren’t happy with an entry-level machine. Hence the ASPs have gone up. And there are consumers for each segment, and we have devices for each segment. Consumers are looking for powerful machines and the Dell Inspiron 14 Plus is targeting them.