Gartner Forecasts Device Shipment Drops Amid Memory Price Surges

Research firm Gartner, Inc. projects a significant decline in global device shipments for 2026, with PC shipments expected to drop by 10.4% and smartphones by 8.4% compared to 2025. The downturn is driven by an estimated 130% surge in combined DRAM and solid-state drive prices by the end of 2026, which is forecasted to increase PC prices by 17% and smartphone prices by 13%.

These cost increases will primarily impact entry-level markets. Gartner predicts that the sub-$500 PC segment will completely disappear by 2028 and that basic smartphone buyers will exit the market five times faster than premium buyers. This pricing shift is expected to prompt consumers and businesses to extend the lifespans of their current devices, potentially increasing security vulnerabilities.

The rise in costs is also projected to delay the 50% market penetration of AI PCs until 2028. Gartner advises device vendors to optimize pricing strategies during the first half of 2026 to protect profit margins before component inflation begins compressing profitability in the second quarter.