The U.S. personal computer (PC) market is accelerating its deterioration as explosive demand in the field of artificial intelligence (AI) continues to put pressure on global supply chains. The latest report released by research organization Omdia shows that U.S. PC shipments in the first quarter of 2026 dropped sharply by 7% year-on-year, with total shipments expected to be 15.8 million units. This data marks the worst annual decline for the U.S. PC market since the third quarter of 2023.
The report pointed out that the core reason for the market shrinkage this quarter is the cascading effect brought about by the AI boom. Currently, major technology giants and AI companies are investing heavily in computing infrastructure, which has greatly occupied the production capacity of the semiconductor supply chain, causing the price of memory chips (memory and flash memory) to continue to rise. Faced with rising component costs, PC manufacturers have to increase terminal selling prices to pass on the cost pressure to consumers, thus severely inhibiting the public's desire to buy cars and replace their phones. Affected by this, entry-level PCs (priced under US$500), which originally had slim profits, were hardest hit, with shipments plummeting 18.7% year-on-year in this quarter.
In terms of market segments, Omdia senior analyst Scott Braverman pointed out that the downturn in the consumer PC market was particularly obvious, with a year-on-year decline of 9.5% in the first quarter. In contrast, the commercial PC market performed slightly more resiliently, with "only" a 5% year-on-year decline. This was mainly due to the unfinished Windows 11 upgrade cycle of enterprises and the early inventory accumulation by some enterprises in anticipation of further price increases. As for the government and education procurement sectors that are severely subject to budget constraints, the decline in shipments is also high. It is expected that this pressure will last throughout the year and may not usher in a substantial recovery until 2027.
The violent fluctuations in the market structure have also broken the original brand ranking. Due to the turbulent price environment and supply chain pressure, HP, which has long been ranked No. 1 in the U.S. market, suffered a setback in the first quarter. Its shipments plummeted 21.6% year-on-year, and its market share shrank to 20.5%, losing its dominance. Dell, on the other hand, bucked the trend with growth of 1.1% and successfully overtook HP with a market share of 25%, taking the top spot in the US PC market. Chinese manufacturer Lenovo also achieved a slight growth of 1.2%, ranking third with a market share of 20%. In addition, Apple and Acer experienced shipment declines of 1.6% and 5.4% respectively. The analysis emphasizes that as the overall market shrinks, the living environment faced by small OEMs in negotiating prices for parts procurement is becoming increasingly difficult. Omdia has cut prices in light of current cost crisis