- PC and Smartphone Shipments to Fall 10.4% and 8.4%
- Entry Level PC Market to Disappear by 2028
- AI PC Adoption to Slow Down Through 2027
Because of rising costs, Gartner expects PC lifetime to increase by 15% for business buyers and 20% for consumers by the end of 2026. These delayed upgrades will further raise concerns over increased security vulnerabilities and challenges of managing older devices.
“The sub-$500 entry-level PC segment will disappear by 2028.” – Ranjit Atwal, Sr Director Analyst at Gartner
The memory-driven price surge will disproportionately affect entry-level smartphones, leading buyers to choose refurbished or second-hand models or keep their phones longer. Premium smartphones will be less affected because of their higher margins.
Gartner analysts expect basic smartphone buyers to exit the market five times faster than premium buyers in 2026.
Critical Pricing Windows Opens in the First Half of 2026
Soaring memory prices are expected to impact the PC market hardest, reshaping its financial dynamics. As a result, PC vendors should be prepared to accept a unit volume decline to sustain profitability, rather than eroding margins to chase price-sensitive buyers.
“Overall, device vendors and channels face a critical window in the first half of 2026 to optimize pricing and protect margins before component inflation compresses profitability from the second quarter onwards,” said Atwal.
