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U.S. Citizens Delay PC Purchases Amid Inflation Hike - Market Experiences 2% Drop in Q2 Performance

Struggling Americans cut back on electronics, prioritizing food purchases, resulting in a decrease in personal computer sales.

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Consumers Delay PC Purchases Due to Inflation, Causing a 2% Drop in Market during Q2
Consumers Delay PC Purchases Due to Inflation, Causing a 2% Drop in Market during Q2

U.S. Citizens Delay PC Purchases Amid Inflation Hike - Market Experiences 2% Drop in Q2 Performance

The US PC market is experiencing a surge in growth, with commercial demand leading the charge. The looming end-of-support deadline for Windows 10 in October is driving US businesses to upgrade their systems, resulting in a projected rise of more than 8% in commercial PC shipments in 2025 and another 3.9% in 2026.

This growth is particularly noticeable in the US market, which is forecasted to reach 71 million units in 2025. The market's highest growth rates this year are attributed to companies like Nvidia and Astera Labs. Nvidia, for instance, experienced a 69% revenue increase year-over-year, driven by AI data centers. Astera Labs’ Scorpio P-series switches have become their fastest-growing product line, contributing over 10% of total sales.

However, the consumer PC market is expected to shrink by nearly 4% in 2025, a trend that has been attributed to consumers prioritizing essentials like food, energy, and shelter over new laptops. The decrease is exacerbated by inflation and weak job reports, which have put pressure on consumers to hold onto older machines rather than upgrading.

Despite this, there are signs of a slight recovery in 2026, with consumer demand for PCs bouncing back slightly, only to dip again in 2027. Interestingly, the education sector is forecasted to see a significant jump in PC shipments, with a predicted increase of nearly 10% in 2027 as schools refresh their fleets.

The government sector is also expected to see growth, with PC shipments predicted to increase by 9.9% in 2025. However, this growth is expected to taper to smaller gains in 2026 before dropping 3.5% in 2027.

In the second quarter of 2025, the overall PC market saw a decrease of 1.4% year-on-year to 18.6 million units. Lenovo's PC market shipments grew by 5.1% year-on-year in Q2 2025, while Dell, HP, and Acer saw decreases of 3.5%, 4.8%, and the sharpest drop compared to other brands, respectively.

One factor affecting the current market numbers is the excess inventory that many vendors have due to earlier stockpiling. This hangover from earlier stockpiling is causing a drag on the market.

However, there is one area where growth is unabated - AI adoption. In the commercial sector, AI adoption has more than doubled over the last two years, with usage up 50% in 2025 alone. This trend is expected to continue, driving further growth in the US PC market.

In conclusion, the US PC market is witnessing a significant shift, with commercial demand and AI adoption playing a pivotal role. While the consumer market is facing challenges due to economic conditions, the outlook for the education and government sectors remains positive. The market is expected to continue its growth trajectory, with the US market forecasted to reach new heights in the coming years.

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