Global PC shipments dropped four percent year-on-year to 65 million units in the second quarter of 2026, ending five consecutive quarters of growth. Counterpoint Research data attributes the contraction to a severe memory crunch, as surging DRAM and NAND component prices driven by global AI data center demand force original equipment manufacturers to raise prices.
The Memory Shortage Breaks a Five-Quarter Growth Streak
Global PC shipments decreased by 4% year-on-year in the second quarter of 2026 to reach 65 million units, according to preliminary data from Counterpoint Technology Market Research reported by EETasia. This downturn halts a five-quarter growth run that began in the first quarter of 2025. While commercial refresh cycles tied to Windows migration and AI personal computer adoption continue to support baseline demand, surging component costs are increasingly constraining production plans.
The root cause traces directly to soaring DRAM and NAND prices. This price surge is driven largely by a sudden glut of artificial intelligence data centers worldwide, as major tech companies rush to build out infrastructure according to Windows Central. PC manufacturers face an unforgiving economic choice between absorbing higher component costs or passing them on to consumers, with most opting for price increases.
Vendor Performance Diverges Amid Market Contraction
Five major vendors controlled nearly 78% of the global PC market in the second quarter, highlighting deep consolidation at the high end while smaller original equipment manufacturers saw flat or declining volumes noted by Wccftech. Purchasing scale and deep supply chain relationships cushioned industry leaders from the absolute worst of the shortage, yet major players still experienced divergent results.
Lenovo maintained its market leadership with a 25.6% share, shipping 16.6 million units despite a 2% year-on-year decrease. HP recorded the steepest drop among the top three players, posting an 8% year-on-year decline in shipments due to its product mix remaining highly exposed to mainstream consumer and mid-range enterprise fleets. Dell also turned downward with a 6% decrease in shipments, though its commercial focus shielded it from the deeper collapses seen in pure consumer markets.
Only two major original equipment manufacturers achieved positive growth during the quarter. Apple registered a 13% year-on-year shipment increase, bolstered by the successful launch of its budget MacBook Neo. ASUS grew shipments by 4% to capture a 7.4% market share, making it the only Windows manufacturer to see an upward trend. ASUS capitalized on agile adoption of new silicon architectures across diverse artificial intelligence personal computer formats.
Industry Shifts Focus Toward Premium AI Platforms
As original equipment manufacturers face elevated bill-of-material costs, market strategy is rapidly pivoting away from entry-level configurations. Companies are prioritizing higher-margin premium systems and premium artificial intelligence personal computers detailed in Counterpoint Research findings.
“The memory shortage is no longer just a short-term supply problem. It has become a key factor changing the direction of the PC industry. As OEMs face higher component costs, the market will shift toward premium AI PCs, since their better performance and on-device AI features make higher prices easier to accept.”
David Naranjo, Associate Director at Counterpoint Research
Enterprise demand is expected to remain relatively resilient due to ongoing Windows upgrades and increased artificial intelligence integration. Conversely, consumer demand will likely stay limited until component costs moderate. Analysts warn that memory prices will remain elevated throughout the second half of 2026, leaving budget-conscious buyers facing prolonged pricing pressure.
Broader Tech Hardware Also Rattled by the Component Crunch
The component crisis extends well beyond traditional computers. The global smartphone market is experiencing similar downward pressure, with research firms projecting historic contractions for the year according to CNBC. International Data Corporation forecasts a 13% decline in global smartphone shipments for 2026, while Counterpoint Research projects a 12% year-on-year drop, marking what it calls the sharpest decline on record.
Omdia analysts similarly warn that global smartphone volumes could fall by around 15% reported by Telecompaper. Chipmakers are prioritizing high-bandwidth memory and enterprise accelerators over conventional memory products to feed the artificial intelligence build-out, leaving consumer electronics brands competing for shrinking allocations.
Uncertain Relief Timelines for Cost-Sensitive Buyers
With memory makers warning that supply constraints could persist for an extended period, market observers see little immediate relief for consumers hoping for inexpensive hardware. Industry forecasts indicate that memory allocation will continue favoring hyperscalers over device vendors through late 2027.
As original equipment manufacturers navigate these structural supply bottlenecks by cutting low-margin models and emphasizing value over volume, consumers face a dwindling supply of affordable entry-level options. Whether secondary markets and refurbished devices will absorb the growing share of buyers priced out of new hardware remains the central open question for the remainder of the year.
