Intel’s Co-CEO Claims High Return Rates for Qualcomm Snapdragon-Powered Laptops Cause Concern for Retailers

Following the departure of Intel’s CEO Pat Gelsinger, the company is now being led by two co-CEOs. Among them, Michelle Johnston Holthaus has voiced strong criticism regarding laptops equipped with Qualcomm’s Snapdragon X Elite and Snapdragon X Plus chips. Reports indicate a significant level of consumer dissatisfaction, resulting in high return rates for these devices, which is alarming retailers.

Intel’s Co-CEO Addresses High Return Rates of Qualcomm Snapdragon Laptops

Since the launch of laptops powered by Qualcomm’s Snapdragon X Elite and Snapdragon X Plus, only 720,000 units have shipped, which represents a mere 0.8% of the overall market. While growth is anticipated in the coming years, Intel’s co-CEO Holthaus remains skeptical about Qualcomm’s trajectory. During her recent remarks at the Barclays Global Technology Conference, covered by Digital Trends, she raised concerns over Qualcomm’s market performance.

Holthaus stated that the elevated return rates of these ARM-based laptops represent any retailer’s “number one concern,” highlighting consumer dissatisfaction and the resulting financial impact on stores selling these products. Although she refrained from disclosing specific return rate statistics, she emphasized that “x86 is the best overall basic architecture” and expressed strong confidence in its future viability.

Despite the challenges confronting Qualcomm’s Snapdragon laptops, such as being priced at a premium compared to alternatives like Apple’s MacBooks, there are signs of improvement. Initially, many devices were criticized for their elevated prices, which deterred potential buyers. Additionally, the previous lack of native app support necessitated running many programs through emulation, creating further friction for users. Nevertheless, these issues appear to be resolving as manufacturers begin offering attractive discounts, enhancing the appeal of Snapdragon laptops.

For instance, the ASUS Vivobook S 15 is now available for just $679.99 on Amazon, boasting impressive specifications such as the Snapdragon X Plus, 16GB RAM, and 512GB storage, making it a compelling option for budget-conscious consumers. Furthermore, Qualcomm’s CEO has previously announced plans to launch Windows laptops for as low as $700 in the upcoming year. The anticipated release of a new, unnamed Snapdragon X variant, expected to feature in products priced around $600, indicates Qualcomm’s strategic move toward capturing the entry-level market segment, posing potential challenges for competitors like Apple, Intel, and AMD.

Although Qualcomm faces hurdles in achieving robust sales for its Snapdragon laptops currently, the increasing support for applications and the rollout of more competitively priced models suggest a positive shift in market share for the company in the following years.

Source: Digital Trends

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