PC shipments are falling, but manufacturers are making more money selling pricier AI PCs

The PC industry is experiencing a shift as manufacturers sell pricier AI-capable machines despite a decline in global shipments. The tight supply of memory chips has driven up component costs, limiting the availability of other hardware categories. As a result, PC vendors are focusing on producing higher-priced devices, particularly those designed to run AI workloads locally.

This strategy is reducing shipment volumes but generating higher revenue for manufacturers. IDC projects that average PC prices will increase by 20% this year, with more modest rises expected in 2027, even as shipments continue to decline. Companies like HP, Dell, and Lenovo have reported revenue growth in their PC segments, with increased emphasis on AI-enabled systems.

These higher-priced machines are seen as a way to protect revenue in the face of falling volumes. However, consumers and budget-conscious buyers may face higher prices with limited relief in the near term, as the memory shortage is not expected to improve before 2028.