The PC market experiences a dramatic decline of over 10% in 2026 according to Gartner data. While AI PCs fail to meet expectations, the death of the budget PC segment makes technology unaffordable for millions.
DRAM Crisis Hits Consumers Hard
HP reports that DRAM now accounts for 35% of PC manufacturing costs -- a historic high that makes budget systems particularly uneconomical:
- DRAM cost share: 35% of manufacturing costs (HP)
- Budget PCs: Virtually disappeared below 500 euros
- Minimum prices: Entry-level models start at 700 euros+
AI PC Hype Fizzles Out
Despite massive marketing campaigns, AI PCs remain a niche segment. Consumers see no clear benefit in local AI features, while the additional costs are deterring.
The market is polarizing: On one side, high-end workstations for professionals; on the other, Chromebooks and tablets for basic tasks. The traditional middle ground of all-round PCs continues to shrink.
Educational institutions and developing countries are particularly affected, where access to affordable computing hardware is critical for digital inclusion.
Sources: Gartner, The Register, HP