PC shipments experienced a significant decline of 20.1% year over year in the third quarter of 2026, reaching 62.7 million units. This marks the worst Q3 decrease recorded by IDC. The top three PC manufacturers, Lenovo, Dell, and HP, all saw their shipments drop by over 20%. While other quarters have shown larger declines in recent years, those followed pandemic highs. Typically, Q3 shipments exceed Q2 as new products are released for the holiday season, but this year shipments fell 9.1% from the previous quarter. This downturn is attributed to an ongoing AI-driven memory shortage that is increasing memory and storage costs, thus suppressing demand. Vendors and their distribution channels had previously stocked up on inventory early in the year to anticipate these price hikes. Consequently, the usual seasonal pattern where Q3 is larger than Q2 was disrupted. However, there is a potential bright spot as vendors and retailers may reduce prices to stimulate demand and clear existing stock. Channels are concerned about holding excess inventory in a market with high prices negatively impacting consumer interest. This could lead to promotions, offering some short-term consumer relief, though prices are not expected to return to previous year levels and will remain elevated.