The RAMpocalypse has led global PC shipments to drop 20 percent in just 12 months

The global PC market experienced a significant decline, marking a 20% drop in PC shipments over the past year, according to IDC. This downturn is primarily attributed to the AI boom, which has led to a surge in the price of DRAM and SSD components, accounting for a larger share of a PC's overall cost - rising from 15% to 40%. As a result, PC prices have become unaffordable for many consumers, leading to a steep decline in sales.

To alleviate this situation, some Original Equipment Manufacturers (OEMs) have stockpiled their inventory in an attempt to offset the rising costs. However, this strategy has led to concerns about inventory management and low demand among global PC channels. Consequently, it is possible that promotional offers could provide temporary relief before prices rise further.

Despite the gloomy outlook, IDC suggests that this could be an opportune time to purchase a new PC. While prices have increased compared to the previous year, the market may experience some short-term relief before more significant price hikes occur. With macroeconomic conditions worsening, experts anticipate that the next few quarters might see a worsening trend before any potential improvement.