The global personal computer market finds itself in a paradoxical situation: shipments are falling while manufacturer revenue is growing. According to International Data Corporation, global PC shipments declined 4.9% in the second quarter. At the same time, analysts expect average computer prices to rise 20% this year, with more moderate price increases to follow in 2027, even as unit shipments continue to decline.
The primary driver is a memory shortage fueled by high demand from data centers serving AI infrastructure. This has driven up component costs and limited their availability to other segments. Manufacturers have responded by shifting production toward higher-priced models, particularly systems capable of processing AI tasks locally.
Quarterly reports reflect this strategy. HP reported an 18% increase in personal systems division revenue in the second quarter, even as unit sales fell 16%. Dell recorded 20% growth in its client solutions segment over the latest quarter, while Lenovo reported nearly 30% growth in its PC and smart devices segment.
IDC Consumer Research Director Jitesh Ubrani explained: "They have to offset the decline in shipments with higher prices to maintain or grow revenue." HP CFO Karen Parkhill added that the share of AI PCs in the company's shipments has grown and will continue to increase.
UBS analyst David Vogt noted that business demand accounts for roughly 75% of the PC market volume and should remain relatively resilient, particularly in regulated industries. However, some of the recent commercial demand may represent orders pulled forward in anticipation of price increases rather than sustainable growth. The consumer segment will be harder to hold, as individual buyers are reluctant to pay a premium for AI features without obvious practical benefits.