The quest for new computing power is hitting some unexpected headwinds. In the first quarter of 2026, shipments of new personal computers in the United States fell to 15.8 million units, marking a sharp 7% decline year-over-year. This dip wasn’t just a seasonal fluctuation; it reflected a complex collision between soaring demand for technology and persistent supply chain hurdles.
The primary culprits behind this slowdown were dual pressures: critical shortages of essential components like memory and storage chips, coupled with the market dynamics created by tariff threats and ongoing software transitions. These factors, combined with the ripple effects of the Windows 11 refresh cycle, created a perfect storm that tempered overall delivery numbers.
Looking deeper into the component crisis, the pressure is particularly intense on memory and storage. As artificial intelligence data centers gobble up resources, the demand for these chips has driven up prices dramatically, creating significant strain across the entire industry. Memory components, which are fundamental to every device, are projected to account for a massive 23% of a computer’s bill of materials—a jump from last year’s 16%. This component scarcity paints a sobering picture for the entry-level market.
Industry forecasts suggest this trend will continue. The entire PC sector is expected to contract by 14.4%, with the most significant pain felt in budget laptops. Shipments of sub-$500 units declined by an even steeper 18.7% year-over-year, hinting at a future where the entry-level PC market might effectively disappear by 2028, driven entirely by escalating memory costs.
In this shifting landscape, major players are maneuvering to redefine affordability. Apple recently introduced the affordable MacBook Neo, offering premium design and performance starting at $599, a move that caught many in the off-shoulder of the PC market. While competitors like Dell released competing budget models powered by Intel processors, navigating the new cost realities remains challenging for manufacturers aiming to hit those entry-level price points.
While overall shipments contracted, the performance across different segments varied significantly. The consumer laptop and desktop market proved relatively resilient, delivering growth primarily through increased sales. However, orders from government units and commercial/enterprise deliveries saw even more severe contractions. The education segment, often focused on entry-level devices, was projected to face the toughest blow, with shipments expected to drop by 28.8% for the year.
Among manufacturers, Dell and Lenovo managed modest growth, driven largely by consumer demand. In contrast, HP, Acer, and Apple all reported declines in deliveries this quarter, highlighting that navigating supply constraints and escalating component costs remains a defining challenge for the technology sector.
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Credit: Tom’s Hardware
