The United States PC market experienced a significant downturn in the first quarter of 2026, with shipments falling 7.0 per cent year-on-year to 15.8 million units, according to the latest research from Omdia.

This result marks the largest annual decline since the third quarter of 2023 and reflects a combination of component supply constraints and surging costs for memory and storage.

The market also faced a demand hangover following the Windows 11 refresh cycle, which had already depleted much of the commercial pipeline.

Comparisons were further impacted by a strong first quarter in 2025, which saw inventory pull-forward due to tariff concerns, alongside some channel stocking in early 2026 as vendors prepared for anticipated price increases.

As DRAM and NAND supply is increasingly diverted towards AI server applications, the rising cost of components is making entry-level devices increasingly unviable.

Shipments of PCs priced under $500 declined by 18.7 per cent during the quarter, and Omdia expects full-year US shipments to drop by 14.4 per cent compared to 2025.

“The impact of component supply constraints on PC shipments materialised in the US market in the first quarter of 2026,” said Scott Braverman, Senior Analyst at Omdia.

He noted that the consumer segment declined by 9.5 per cent year-on-year, performing worse than the overall market as consumers delayed purchases due to higher price tags and challenging economic conditions.

In contrast, business shipments fell by only 5.0 per cent, supported by remaining Windows 11 refresh activity and strategic inventory purchases, added Braverman.

While the education sector saw a slight improvement with a decline of only 6.2 per cent, this stabilisation is unlikely to last as rising prices disproportionately affect the lower-cost devices typically used in schools.

Government procurement also suffered as price increases strained public sector budgets, and both segments are expected to remain under pressure until at least 2027.

“While average selling prices rose just 4 per cent year-on-year in Q1 2026, Omdia expects growth to reach 12 per cent in Q2 and exceed 12 per cent in the second half of 2026 as supply-side headwinds continue to materialise,” said Kieren Jessop, Research Manager at Omdia.

She added that demand dynamics are also driving prices higher as the share of AI-capable PCs grew to 44 per cent of all shipments, with large enterprises increasingly procuring these higher-cost machines.

Vendor performance varied widely, with Dell capturing the market lead with a 25.0 per cent share, posting 1.1 per cent growth despite the wider contraction.

Lenovo also achieved 1.2 per cent growth to reach 20.0 per cent of the market, while HP saw a 21.6 per cent decline in shipments, resulting in the loss of its top position.

Apple outperformed the overall market with a modest 1.6 per cent decline, maintaining a 16.9 per cent share as its presence in the business segment grew to 15.3 per cent.

Smaller vendors faced the most severe pressure, with shipments falling 13.1 per cent as they lacked the component procurement leverage enjoyed by their larger competitors.