IDC has released its latest report on the PC sector, cutting shipment forecasts by a large margin amid supply chain uncertainties.
IDC Revises Global PC Shipments With a Huge 'Double-Digit' Decline, Claiming Recovery Signs Are Currently Too Far
The influence of DRAM shortages on the consumer PC segment has become much broader than initially perceived, as securing capacity has become a problem, and manufacturers are now launching product lines ahead of schedule to navigate difficult times. IDC's latest PC market outlook focuses on the industry's state, and according to its latest analysis, PC shipments are expected to decline by 11.3% this year, a figure much higher than its November report. Apart from supply chain constraints, IDC also says the ongoing Middle East conflict poses further problems for OEMs.
The overall tech industry, as well as many others, continues to face uncontrollable headwinds that, when compounded, result in massive disruption. The lists of industry and geopolitical events that continue to grow is making decision‑making—and even survival in some sectors—nearly impossible.
- Ryan Reith, Group VP, Devices and Consumer
The report notes that manufacturers are deploying countermeasures to address the situation, with one of the more prominent being extensive price hikes. It is claimed that the average selling prices (ASPs) of consumer products are increasing rapidly, and with that, the value of the total PC market will grow by a modest 1.6% to $274 billion. While this might sound optimistic, it is important to note that this means the era of budget-friendly PC products is almost over, and that, over time, OEMs and supply chain partners will be forced to adjust to BOM costs by raising prices.
Memory shortages will persist well into 2027. While we anticipate some easing of prices beginning in 2028, the market is unlikely to return to the pricing levels seen in 2025. Instead, we expect a new normal defined by structurally higher ASPs and a corresponding softening in long-term demand.
- Jitesh Ubrani, IDC
Other solutions to the DRAM shortages include stripping down product specifications and diversifying sourcing strategies, yet the outcomes of these measures will become apparent as we move forward. In a recent report, we discussed the few chances of memory prices returning to normal levels, given that there are no signs of DRAM demand slowing in the enterprise sector; instead, adoption volume has grown dramatically. This leaves vendors like ASUS, HP, and Dell with few options, apart from raising product prices to meet DRAM contract prices.
The normalization of the PC industry isn't expected to happen anytime soon. At the same time, many vendors have already begun focusing on enterprise demand to offset the upcoming decline in revenue from their consumer businesses.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
Follow Wccftech on Google to get more of our news coverage in your feeds.
