Affordable laptops with good performance will become scarce due to CPU and memory scarcity, increased tariffs, and a market shift towards premium devices.
Businesses planning PC upgrades this year should brace for higher laptop prices and potentially reduced performance, according to industry analysts.
Rishi Padhi, a principal analyst at Gartner, noted that PC manufacturers are already indicating widespread price hikes and likely downgrades in memory specifications, particularly for entry-level models.
The availability of affordable laptops offering reasonable performance will diminish for the foreseeable future, primarily due to shortages in crucial chips and memory. Padhi explained that “With the RAM needed for Windows 11 and Copilot+ now being much costlier, the price increase and scarcity in supply makes it difficult to deliver sub-$600 laptops without compromising user experience.”
Component costs are escalating faster than in late 2025, with tariffs also playing a significant role.
Jack Gold, principal analyst at J. Gold Associates, commented, “Many PC components come from overseas suppliers, and the PC vendors can’t just eat all the tariffs that are imposed on them.”
Jean Philippe Bouchard, IDC research vice president, stated in a press release that the 2026 PC market is “shaping up to be extremely volatile.” Both Gartner and IDC attribute this year’s expected price surge to insufficient supplies of key components like CPUs and memory.
Gartner’s Padhi believes this constraint on supply is fundamental and ongoing, not temporary, potentially extending into 2027.
Padhi added, “This dynamic is delaying true AI PC experiences into the premium segment, limiting mass market adoption, and forcing vendors to either raise prices or reduce specifications to protect margins.”
Gold noted that these increased prices complicate the decision for companies to upgrade to AI-capable PCs. Since most AI functions currently happen in the cloud via browsers rather than directly on PCs, businesses might not see a compelling reason to invest in new AI PCs.
Gold questioned the immediate need for such an upgrade, saying, “There really isn’t any ‘killer app’ outside of what I can do through a web browser. Copilot [Microsoft’s AI assistant] is fine, but do I want to go out and spend $1,000 on a new machine to use that feature?”
Another factor in the price surge is a stronger focus by suppliers on manufacturing higher-end devices, neglecting the more affordable systems typically purchased by general consumers. Gold likened this trend to SUVs dominating the car market.
He further commented, “Even Chromebooks are experiencing issues as the vendors are moving to supply higher-price PCs rather than building lower-end Chromebooks.”
In 2025, PC shipments significantly exceeded forecasts, growing by 9.1% to reach 270 million units compared to the previous year, according to Gartner. This surge was primarily driven by the approaching end-of-life for Windows 10, a desire among users and businesses to futureproof their systems, and a rush to acquire hardware before new tariffs took effect.
AI PCs benefited from Microsoft’s push for Windows 11 upgrades in 2025. Microsoft encouraged businesses to adopt systems labeled “Copilot+,” signifying PCs capable of executing AI tasks locally.
Gartner’s Padhi predicts that Microsoft will integrate more AI functionalities into its Windows 11 PCs throughout 2026 and 2027, but the Copilot+ branding will likely transition into a general user experience rather than a primary hardware selling point.
Padhi also pointed out that the demand for AI in servers and the extensive requirements of large language models (LLMs) are contributing to the rise in PC prices.
Memory manufacturers are prioritizing the production of more profitable high-bandwidth memory (HBM) for AI applications in data centers. This scarcity leads to increased memory costs and limitations in PC features, as computer makers transfer these expenses to consumers, Padhi explained.
Both Intel and AMD have already disclosed that their PC processors are in limited supply and unable to meet current demand, with both companies actively working to boost production.
In 2025, Gartner reported Lenovo as the leading PC vendor, shipping 73.6 million units and securing a 27.2% market share. Lenovo’s shipments for 2025 marked a 17.6% increase from 2024.
HP ranked as the second-largest PC manufacturer, shipping 57.4 million units in 2025, an 8.3% increase, holding a 21.3% market share.
Dell came in third, shipping 41.3 million units with a 4.9% growth and a 15.3% market share. Apple followed in fourth place with 25 million units shipped, seeing a 10.3% growth and capturing 9.2% of the market. Asus and Acer secured the fifth and sixth positions, respectively.
Further reading:
- Intel’s AI focus may lead to a scarcity of lower-cost PCs in 2026
- Anticipated memory shortages fuel a rush in PC purchases
- Guide for buyers: Selecting suitable business laptops
- Analysts suggest a halt to Microsoft’s Copilot+ PC hype
- Understanding AI PCs: The integration of artificial intelligence into your desktop
