PC shipments fall for first time in two years as memory shortage bites

Worldwide PC shipments fell by nearly five percent to 68.2 million units in the first quarter of 2026, according to research by the International Data Corporation (IDC). This marks the first decline in two years after nine consecutive quarters of growth. The downturn began in late 2025, coinciding with the global memory crunch escalating from an annoyance to a full-blown crisis.

IDC attributes the decline to an AI-driven memory shortage, which the firm does not expect to end until 2028. This has triggered price hikes across the industry. However, IDC also reports that revenues for PC manufacturers continue to rise because "vendors are pushing price increases through faster than demand is dropping." Consumers bear the brunt of the memory crunch, not companies.

"The real story here is the disconnect between units and dollars: shipments are falling, but revenue is climbing," said Jitesh Ubrani, an IDC researcher. "Vendors are bracing for further price hikes into 2027." Ubrani also expects an even steeper decline later in 2026 as current inventory runs out and consumers face more price increases. He warns this could seriously hamper the typical PC upgrade cycle.

Apple is the only company that posted increased PC shipments, up 800,000 units compared to the same quarter in 2025. Its market share rose from 8.5% to nearly 10%. But Apple is not immune to memory-related price hikes. The entry-level MacBook Neo went from $600 to $700, while the base MacBook Air now costs $1,300.

Outgoing CEO Tim Cook recently said: "There's less supply at a time when consumers want devices and the memory guys are passing along huge price increases. We definitely need memory pricing and supply to return to reasonable levels for consumer products." Apple reported $68.5 billion in cash on hand for the most recent quarter, a 41% increase year-over-year, and is valued at over $4.6 trillion.