Dell’s reversal on the “AI-first” console and the return of XPS at CES 2026 mark a clear pivot: the company will keep Microsoft’s Copilot+ branding on its hardware where required, but it is refocusing messaging and engineering toward
build quality, battery life, displays, and gaming rather than selling machines on the promise of local AI inference alone.
Background / Overview
The PC industry’s bet on marketing “AI PCs” — machines positioned around on-device neural processors and Copilot+ experiences — has proved more complicated than many vendors hoped. Microsoft defined a clear hardware bar for Copilot+ certification (notably an NPU capable of roughly
40+ TOPS) and encouraged OEMs to ship Copilot-capable devices with a dedicated Copilot key on the keyboard. That push created an industry-level narrative: buy a new PC to get the best AI features in Windows 11. Microsoft’s Copilot+ guidance and device requirements make that position explicit. Dell’s recent public shift — announced during CES 2026 and clarified in its investor/press materials and executive comments — is a course correction from heavy AI-first marketing toward more traditional, tangible buying reasons: premium materials, improved thermals, long battery runtimes, and gaming-capable SKUs. The company will still ship hardware that can run Copilot features and will continue to comply with Microsoft’s Copilot+ keyboard and certification elements where required, but marketing will emphasize the things customers actually pay attention to.
What Dell announced at CES 2026
XPS returns — and with it, a change in tone
Dell formally revived the XPS brand at CES 2026, bringing back new XPS 14 and XPS 16 laptops, promising premium chassis materials (CNC aluminum, improved glass and typing surfaces), optional high‑quality OLED displays, and extended battery claims. The move was framed as a return to “roots” and a response to customer feedback after last year’s controversial rebrand.
Jeff Clarke, Dell’s vice chairman and COO, offered the soundbite that underscores the pivot:
“We’re getting back to our roots with a renewed focus on consumer and gaming.” Key attributes Dell highlighted at CES 2026:
- A renewed premium lineup with XPS as the marquee consumer brand.
- Emphasis on display quality, battery life, typing experience, and fit-and‑finish.
- Expanded Alienware gaming options and clearer product tiering (XPS for premium consumers, Alienware for gaming, Dell Pro for business).
- Availability staged by region and configuration, with pricing positioned in the premium bracket.
The tactical change: less AI theater, more hardware substance
Dell’s product pages and exec remarks make the pivot plain: deliver the hardware capabilities (NPUs and Copilot+ compatibility where needed), but sell devices on
everyday benefits — battery life, ergonomics, and display fidelity — that mainstream buyers notice. The company will not abandon AI-capable silicon, but it will avoid leading with speculative “on-device AI will change everything” narratives that have so far failed to move most consumer purchase decisions. This recalibration was visible across OEM messaging at CES and in immediate outlet coverage.
The Windows 11 / Windows 10 reality check
Migration is slower than expected
Dell’s own public financial commentary makes one point bluntly: many users remain on Windows 10, and the Windows 11 upgrade cycle has not produced the quick refresh bump OEMs hoped for. In its Q3 2026 earnings remarks, Jeff Clarke noted the Windows 11 transition is
10–12 percentage points behind the prior OS migration at a comparable point — a figure Dell used to justify cautiousness on pushing speculative AI messaging as a primary sales driver. Dell also characterized the PC market as roughly flat year‑over‑year in its guidance, even while server and AI infrastructure demand soared.
Why this matters for OEM strategy
- Many consumers still see no urgent reason to upgrade if their Windows 10 machines are stable and secure.
- Windows 10 holdouts blunt OEM efforts to monetize Copilot+ messaging; the hardware delta (NPUs, extra RAM, firmware updates) looks like marginal value for users who mainly browse, stream, and use web apps.
- Price sensitivity in a weak consumer PC market makes premium AI‑oriented SKUs a harder sell without demonstrable, everyday benefits.
Industry commentary and Dell’s internal data both show that the current upgrade incentive is more likely tied to
device age, security posture, and specific workflow needs than to an abstract promise of “local AI.” That realization underpins Dell’s pivot.
What “Copilot+” actually requires — and why the category is narrow
Technical floor: NPUs and the 40+ TOPS threshold
Microsoft’s Copilot+ classification is not marketing puffery — it is tied to concrete hardware thresholds. Copilot+ features were designed with on‑device acceleration in mind and Microsoft explicitly calls for an NPU capable of
40+ TOPS for many flagship experiences (Recall, Cocreate, live translate, accelerated inference). That requirement means not all new Windows 11 machines qualify; OEMs must include silicon that meets those TOPS figures to advertise the Copilot+ consumer experience.
Real-world consequences of the NPU requirement
- Copilot+ PC features will vary significantly by SKU; buyers must check the exact model’s NPU claim rather than rely on family names.
- Early Copilot+ devices used Snapdragon X Elite/Plus silicon; later Intel Core Ultra and AMD Ryzen AI parts started to appear as qualifying alternatives.
- Many users who do not need on-device model inference gain little from paying the premium solely for an NPU.
This technical reality contributes to the slow mainstream uptake: the value proposition is specific (on‑device speed, privacy, offline features) and not universally compelling for casual users.
The Copilot key, OEM compliance, and user pushback
Microsoft standardized a
dedicated Copilot key on new Windows keyboards to provide a single‑press entry to Copilot features. Dell — like other OEMs — ships keyboards with that key on many models, and its support pages document how the key behaves when Copilot or Recall isn’t available. The presence of the Copilot key is a platform‑level choice that Microsoft has encouraged for new Windows 11 devices.
Why Dell keeps the key (and why users complain)
- From a platform partner and certification perspective, including the Copilot key and Copilot+ readiness makes product qualification and messaging straightforward.
- Many users have reported frustration with the dedicated Copilot key because it sits where older keys (right Ctrl or Menu) used to be and can be difficult to remap in firmware. Dell’s community forums show pressure from customers demanding remap or removal options. These usability complaints have amplified the backlash against AI-first ergonomics.
A practical note on OEM constraints
Statements that OEMs “must” include the Copilot key should be interpreted carefully: Microsoft strongly recommends and standardizes Copilot interactions and provides certification/tethered features that are unlocked by certain hardware designs. OEM compliance reflects strategic alignment and platform certification incentives rather than a single externally enforceable mandate.
Claims about motives such as “for Microsoft’s sake” are plausible industry reading but not provable as Dell’s explicit internal rationale. That nuance should be treated as a caution when interpreting headlines.
Market and product impacts: strengths, risks, and what buyers should watch
Notable strengths of Dell’s recalibration
- Product clarity: Restoring XPS gives shoppers a clear premium family tied to quality and predictable features; this reduces brand confusion created by the prior rename. Media coverage and Dell’s press copy emphasize clearer buyer journeys.
- Tangible improvements: Focus on battery life, display quality, and comfort addresses everyday user pain points that drive purchase decisions more reliably than speculative AI features.
- Optional future-proofing: Dell still ships devices capable of running Copilot+ experiences; that preserves upgrade paths for users who later decide they want on‑device AI capabilities.
- Channel realism: Dell’s acknowledgment of slower Windows 11 adoption allows partners to plan staged migrations and services rather than pursue impulsive refresh cycles.
Risks and open questions
- Perception of retreat: For investors and some enterprise buyers, dialing back AI-first rhetoric might look like retreat from a profitable narrative (OEMs are still seeing record AI server bookings). The market will read the messaging both as prudence and as an admission that “AI alone” isn’t driving consumer PC purchases.
- Fragmented feature sets: The Copilot+ ecosystem creates a two‑tier experience where not all Windows 11 machines can do everything. That fragmentation complicates enterprise procurement, imaging, and helpdesk workflows.
- Ergonomics and firmware constraints: The Copilot key controversy shows that platform-level choices can damage goodwill when users feel forced into usability compromises. Unless OEMs provide robust remapping options or firmware fixes, annoyance will persist.
- Regulatory and privacy scrutiny: On-device AI promises privacy benefits, but agentic features that access files, recall timelines, or process personal data will attract regulatory scrutiny and enterprise security gating. Vendors must provide transparent privacy, control, and rollback options for agentic features.
What savvy buyers and IT teams should do now
- Inventory existing devices and classify readiness:
- Identify machines that truly need replacement for security/compliance reasons.
- Tag devices that are Windows 11‑capable but not upgraded; plan staged pilots before wholesale refreshes.
- Prioritize real, measurable benefits:
- Make battery life, display quality, keyboard feel, and thermals the primary selection criteria for consumer and knowledge-worker devices.
- Reserve Copilot+ purchases for users who will use on‑device AI features regularly (creators, some knowledge workers).
- Validate Copilot+ claims:
- If on-device AI matters, verify the NPU TOPS claim for the exact SKU — not just the family name. Microsoft and OEM pages list qualifying NPUs and measured TOPS.
- Negotiate migration services:
- Use the slower Windows 11 transition to secure favorable refresh terms, lifecycle services, and testing windows with OEM partners rather than paying up front for speculative benefits.
- Insist on remapability and firmware transparency:
- For hardware that ships with nonstandard keys (Copilot), require OEMs to publish remapping utilities or firmware options to restore users’ preferred keyboard behavior. Community feedback shows this is a real pain point.
Final analysis: pragmatic realism over hype
Dell’s shift at CES 2026 is significant because it acknowledges a simple commercial truth: mainstream buyers purchase on
visible, repeatable value — longer battery life, comfortable keyboards, crisp displays, and affordable performance — not on abstract promises that local AI will someday save minutes a day. Dell will continue to ship hardware capable of Copilot+ experiences and will comply with platform expectations like the Copilot key when appropriate, but the marketing and immediate product emphasis will be consumer and gaming-centric rather than AI-first. That measured stance aligns with what independent coverage and Dell’s own financial commentary reveal about demand, migration lag, and channel dynamics. This correction is a useful course adjustment for the PC industry. It reduces the risk of overselling nascent features and reframes the conversation around the everyday tradeoffs customers actually evaluate. At the same time, the industry must keep pushing the technical and software work that will make on-device AI genuinely useful — improved developer optimization for NPUs, clearer enterprise controls for agentic features, and fewer UX compromises like unremappable keys.
Dell’s playbook going into 2026 is therefore twofold: ship capable hardware (so future Copilot features remain accessible) while winning today’s buyers with
comfort, craftsmanship, battery life, and gaming performance. The near-term winner will be the OEMs that can balance being technically “future-ready” without leaning exclusively on a promise that, to most consumers, has not yet translated into everyday, measurable value.
Conclusion
The day of “buy this laptop because it’s an AI PC” is not over, but it is no longer the lead sales story for a major OEM. Dell’s CES 2026 pivot — reviving XPS, emphasizing build quality and gaming, and quietly preserving Copilot+ readiness where required — is a pragmatic response to a market that rewards tangible user benefits. Buyers should treat Copilot+ as a targeted feature set worth paying for only when it meets a documented, repeatable need; otherwise, prioritize the core hardware attributes that define daily experience.
Source: Windows Latest
Dell will still have Copilot+ PC branding for Microsoft's sake, but it will focus on gaming, build-quality, not Windows 11 AI efforts