The memory shortage is hitting PC sales hard, but vendor revenues are still growing at the expense of consumers

PC shipments have fallen for the first time in more than two years, hit by the memory supply crunch caused in part by the rise of AI.

Recent analysis from IDC found global PC shipments slid 4.9% on year in the second quarter of this year to 68.2 million units, down from 71.7m in the same quarter last year.

The figures mark the first decline in the market after nine quarters of growth, and that’s largely down to continued memory shortages.

IDC noted, however, that the situation has been exacerbated by supply issues with storage and other components, as well as what the company referred to as "geopolitical issues".

The massive AI infrastructure build-out has led to a shortage in memory, spurred on by manufacturers pivoting to produce more lucrative data center components rather than those for consumer products.

That RAM shortage has led to a sharp decline in lower cost devices, with Gartner predicting earlier this year that PC sales will drop by 10%.

Consumers picking up the bill

IDC said that while units shipped slid, PC makers reported growth in revenue, showing how the cost of such challenges are being passed on to consumers and businesses.

"The real story here is the disconnect between units and dollars: shipments are falling, but revenue is climbing because vendors are pushing through price increases faster than demand is dropping," said Jitesh Ubrani, research director for consumer devices at IDC.

That's not likely to change anytime soon, Ubrani warned.

"Given worsening macro conditions and a memory shortage that isn’t expected to ease until early 2028, we don’t expect another round of inventory pull-forward, which points to a sharp slowdown in growth rates in the second half of 2026," he added.

"Vendors are bracing for further price hikes into 2027, and channels are already flagging concern about elevated inventory at these higher price points."

A host of device manufacturers have raised prices in response to the spiralling memory crisis. Outgoing Apple CEO Tim Cook said last month that the company would raise prices due to the issue.

"There's less supply at a time when consumers want devices and the memory guys are passing along huge price increases," he said at the time.

Apple wins with MacBook Neo

The increased pressure on brands could lead to vendor consolidation of market share, IDC warned. The consultancy noted that larger brands such as Apple, Dell, or Lenovo can use their scale across different product lines – be it smartphones or servers – to access memory supply.

The result here is that smaller rivals could be left in the dust and scrambling for what supplies are left.

"As market conditions continue to worsen… supply chain management and capabilities are increasingly important," said Jean Philippe Bouchard, vice president for consumer devices at IDC.

"The largest vendors, with their buying power and long-standing supplier ties, are best positioned to take share from smaller rivals."

Compared to the second quarter in 2025, the big three PC makers – Lenovo, HP, and Dell – were largely flat in terms of market share, though all three saw single-digit decreases in shipments, with HP in particular down 9%.

Apple, however, grew market share from 8.5% to 9.9%, with shipments up 10% from 6.1m to 6.7m in the second quarter of this year versus 2025.

"Apple’s share gain coincided with its latest product launch, the MacBook Neo, and while the company did raise prices in line with the broader market, it still remains well positioned against rivals facing the same cost pressures," added Bouchard.

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