Soaring memory prices have delivered a heavy blow to the global personal computer market, driving down worldwide shipments by 21% in the third quarter of 2026 as surging costs for RAM and SSD components forced consumers to delay new purchases or device upgrades.
Global PC orders – encompassing desktops, notebooks and workstations – fell to 58 million units in the third quarter, down from 73 million units recorded in the same period of 2025, according to market research firm Omdia.
The primary catalyst for the decline is the relentless price inflation of DRAM and NAND flash memory. Omdia noted that while RAM and SSDs historically accounted for roughly 15% of a total PC’s manufacturing bill of materials, that share has jumped to nearly 40%. The surge follows memory manufacturers reallocating production capacity towards lucrative AI servers and data centres, squeezing supply for consumer PCs.
Although PC manufacturers have implemented multiple price hikes, the adjustments have failed to offset rising component expenses. The pressure is especially severe in the budget laptop and entry-level PC segments, where profit margins are razor-thin. Consequently, vendors have been forced to cap hardware specifications, often leaving entry-level laptops stuck at 8GB of RAM and 256GB SSD storage, and reduce promotional incentives to keep shelf prices manageable.
The downturn has been exacerbated by inventory oversupply. Channel partners and manufacturers aggressively stockpiled units during the first half of the year to preempt expected cost increases. However, consumer demand cooled dramatically in the third quarter, leaving distributors with excess stock as elevated retail prices deterred buyers.
Among top PC makers, Lenovo maintained its global market lead with approximately 14.9 million units shipped, followed by HP at 10.3 million and Dell at 7.6 million. HP suffered the steepest drop among major vendors, with shipments slumping 31% year-on-year, while Dell saw a 25% decline. Apple and ASUS fared relatively better, posting smaller contractions of 11% and 7%, respectively.
Industry analysts warn that market relief is unlikely in the near term. Market intelligence provider TrendForce projects DRAM prices will climb an additional 10-15% in the fourth quarter of 2026, while NAND flash memory used in SSDs could rise by 15-20%, further pushing up PC manufacturing costs.
Looking ahead to the fourth quarter, Omdia projects global PC shipments will drop a further 24% compared to the same period in 2025, while Counterpoint Research estimates the decline could reach 27%. Industry experts warn the market headwind could persist well into 2027 unless memory component pricing stabilizes.
The global PC industry now faces severe compound pressures, caught between escalating component costs, higher retail price tags and weakening consumer purchasing power – resenting a challenging environment for both device manufacturers and prospective buyers.