**Rising Costs Push Average Selling Prices of PCs Higher in the U.S. Market**
The United States PC market has experienced a notable downturn in the first quarter of 2026, with shipments decreasing by 7.0 percent year-on-year, totaling 15.8 million units. This decline, reported by research firm Omdia, represents the largest annual drop since the third quarter of 2023. The downturn is attributed to a combination of component supply constraints and rising costs for essential components such as memory and storage.
The first quarter of 2026 was marked by a "demand hangover" following the Windows 11 refresh cycle, which had already depleted much of the commercial pipeline. Comparisons to the previous year were further complicated by a strong first quarter in 2025, where inventory pull-forward was driven by tariff concerns. Additionally, some channel stocking occurred in early 2026 as vendors anticipated price increases.
As supply chains shift, a significant portion of DRAM and NAND memory is being redirected towards artificial intelligence (AI) server applications. This shift has made entry-level devices increasingly unviable, leading to a sharp decline in shipments of PCs priced under $500, which fell by 18.7 percent during the quarter. Omdia forecasts a full-year decrease in U.S. PC shipments of 14.4 percent compared to 2025.
Scott Braverman, a Senior Analyst at Omdia, noted that the impact of component supply constraints is becoming evident in the U.S. market. The consumer segment saw a decline of 9.5 percent year-on-year, performing worse than the overall market. This decline is largely attributed to consumers delaying purchases due to higher prices and challenging economic conditions. In contrast, business shipments experienced a smaller decline of 5.0 percent, buoyed by ongoing Windows 11 refresh activities and strategic inventory purchases.
The education sector showed a slight improvement, with a decline of only 6.2 percent. However, this stabilization is expected to be short-lived, as rising prices disproportionately affect the lower-cost devices typically utilized in schools. Government procurement has also been impacted, with price increases straining public sector budgets. Both the education and government segments are anticipated to remain under pressure until at least 2027.
While average selling prices rose by just 4 percent year-on-year in the first quarter of 2026, Omdia predicts that growth will accelerate to 12 percent in the second quarter and exceed 12 percent in the latter half of 2026 due to ongoing supply-side challenges. The demand dynamics are also contributing to rising prices, as the share of AI-capable PCs has grown to 44 percent of all shipments, with large enterprises increasingly purchasing these higher-cost machines.
Vendor performance in the market has varied significantly. Dell emerged as the market leader, capturing a 25.0 percent share and achieving a 1.1 percent growth despite the overall market contraction. Lenovo also experienced a slight growth of 1.2 percent, reaching a 20.0 percent market share. In contrast, HP faced a substantial decline of 21.6 percent in shipments, resulting in the loss of its top position. Apple managed to outperform the overall market with a modest decline of 1.6 percent, maintaining a 16.9 percent share and increasing its presence in the business segment to 15.3 percent.
Smaller vendors have faced the most significant challenges, with shipments declining by 13.1 percent as they lack the component procurement leverage enjoyed by larger competitors. This disparity in performance highlights the ongoing pressures within the U.S. PC market as it navigates rising costs and shifting demand dynamics.
As the market adjusts to these challenges, stakeholders will be closely monitoring how these trends evolve throughout 2026 and beyond. The combination of rising prices, changing consumer behavior, and the impact of AI technology will likely continue to shape the landscape of the U.S. PC market in the coming months.