IDC warns of major PC market downturn due to memory crunch (www.engadget.com)

The International Data Corporation (IDC) has issued a warning about a significant downturn in the PC market, predicting that shipments could fall by up to 8.9 percent by 2026. This decline is largely attributed to a memory crisis, where major manufacturers are prioritizing the production of high-bandwidth memory (HBM) and high-capacity DDR5 chips for AI data centers over the conventional DRAM and NAND needed for consumer PCs. As a result, the price of available RAM is escalating, prompting companies like Framework to raise prices on their devices and forecast further increases in costs. This situation is particularly concerning for the AI/ML community, as the demand for "AI PCs" that can run complex models locally was expected to revitalize the post-pandemic PC market. However, the greater memory requirements of these machines could exacerbate their vulnerability to the very supply challenges intended to help drive growth. Additionally, the price hikes and reduced shipment forecasts are likely to extend beyond PCs, potentially impacting the smartphone market—where average prices could also see increases of 6 to 8 percent, and shipments could drop by 5.2 percent. With companies like Apple and Samsung more insulated from these fluctuations, smaller manufacturers may face tougher challenges ahead.