Key facts
- Global PC shipments fell 20.1% year-over-year to 62.7 million units in Q3 2026, according to IDC.
- Omdia reported a 21.2% year-over-year decline to 58.1 million devices in the same period.
- Desktop PC shipments dropped 23.5% and laptop shipments fell 20.6% according to Omdia.
- Memory and storage now represent nearly 40% of PC manufacturing costs, up from 15%.
- PC prices have increased more than fourfold due to component cost hikes.
Global PC shipments experienced a significant downturn in the third quarter of 2026, with a 20.1% year-over-year decline to 62.7 million units, according to data from IDC. This marks the sharpest drop recorded for a third quarter by IDC and the most severe decline since the first quarter of 2023.
Omdia reported a similar trend, with global shipments of laptops, desktops, and workstations falling 21.2% year-over-year to 58.1 million devices. Within this, desktop PC shipments decreased by 23.5% to 11.7 million units, and laptop shipments declined by 20.6% to 46.4 million.
Analysts attribute the slump to a confluence of factors, primarily driven by increased upstream component costs. Surging demand for High Bandwidth Memory (HBM) and server DRAM for AI workloads has constrained manufacturing capacity for consumer devices, leading memory and storage to constitute nearly 40% of a PC's bill of materials, compared to a typical 15%. This has resulted in PC prices increasing by more than fourfold.
PC vendors and sales channels had previously stocked up on inventory earlier in the year in anticipation of memory price hikes, leaving minimal demand for the third quarter. "Sales channels are now worried about carrying too much inventory into a market where high prices are suppressing demand," said Jitesh Ubrani, research director for consumer devices at IDC. He anticipates that while promotions might offer some short-term relief, prices will likely remain elevated, with the risk of further declines in the coming quarters given worsening macroeconomic conditions.
Ishan Dutt, research director at Omdia, noted that the price increases have fully impacted end-market pricing, leading consumers and IT decision-makers to respond accordingly. Vendors and their manufacturing partners have begun scaling back production, while channel partners continue to manage elevated inventory levels. Omdia forecasts a further 24% year-over-year decline in PC shipments for the next quarter, followed by a 7% decrease in 2027.