The Zacks Analyst Blog Highlights Lenovo, HP, Dell and Apple
For Immediate Release
Chicago, IL – July 10, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Lenovo Group Limited LNVGY, HP Inc. HPQ, Dell Technologies Inc. DELL and Apple Inc. AAPL.
Here are highlights from Thursday’s Analyst Blog:
PC Shipments Fall in Q2 as Memory Crunch Weighs on Industry Growth
The global PC market lost momentum in the second quarter of 2026 after posting growth for nine consecutive quarters. According to a report by the International Data Corporation (“IDC”), worldwide PC shipments fell 4.9% year over year to 68.2 million units as a prolonged memory chip shortage disrupted production and limited product availability. The decline highlights that supply constraints, rather than weak customer demand alone, are becoming a major challenge for the industry.
The biggest reason behind the decline was the shortage of DRAM memory chips, per the IDC report. PC makers had previously built inventories in anticipation of supply disruptions, but that strategy is becoming harder to sustain as memory availability remains tight. Storage component shortages and geopolitical uncertainties also added pressure to manufacturing and shipments.
IDC expects the memory shortage to continue until early 2028, reducing the likelihood of another inventory build-up and slowing market growth through the rest of 2026 and into 2027.
Computer - Mini computers Industry 5YR % Return
A Glance at Top PC Vendors’ Performance in Q2
Among the leading PC makers, Lenovo Group Limited remained the global leader with 16.6 million shipments and a 24.4% market share, although its shipments slipped 2.1% from a year earlier. HP Inc. experienced the sharpest decline among the top three vendors, with shipments dropping 9% to 13 million units. HP ended the second quarter with a market share of 19.1%. Dell Technologies Inc. also posted a 5% decline, shipping 9.3 million PCs while maintaining a 13.6% market share.
Apple Inc. was the standout performer in the quarter. Shipments rose 10.1% year over year to 6.7 million units, increasing its market share to 9.9% from 8.5% a year ago. According to IDC, the successful launch of the MacBook Neo, combined with strong supply chain management, helped Apple grow despite industry-wide cost pressures. ASUS delivered stable results, with shipments remaining nearly unchanged at 5 million units, with a market share of 7.4%.
Emerging Trends in the PC Industry
Although PC shipment volumes declined in the second quarter, the industry's revenue picture remains stronger than the shipment data suggests. IDC stated that PC makers have successfully passed rising component costs on to customers by increasing product prices. As a result, many vendors are earning more revenues, even while selling fewer systems.
However, this trend comes with risks. Higher PC prices may cause consumers and businesses to delay replacement purchases, especially if economic conditions remain weak. IDC expects the memory shortage to continue until early 2028, meaning pricing pressure could remain elevated well into 2027.
Another important trend highlighted by the IDC report is the growing role of artificial intelligence (AI) in the PC market. Businesses and consumers are increasingly looking for devices that can process AI applications directly on PCs instead of relying entirely on cloud services. Local AI processing can improve performance while reducing cloud computing costs. However, higher hardware prices caused by expensive memory chips may slow the pace of AI PC adoption in the near term. Once memory supplies improve, the AI PC market is expected to regain stronger momentum.
IDC also pointed out an interesting trend that large vendors are gaining an edge over the smaller ones amid the ongoing supply crunch. Companies with stronger supplier relationships and greater purchasing power are better positioned to secure limited memory supplies. Their broader businesses across servers, smartphones, and other devices also provide additional leverage when negotiating with suppliers.
As a result, IDC expects further consolidation in the industry, with leading brands likely to capture a larger share of the market while smaller vendors struggle with supply constraints and rising costs.
PC Market’s Outlook Remains Challenging
IDC’s second-quarter PC shipment report indicates that supply constraints have become the biggest challenge for the PC industry. While higher prices are helping protect revenues and margins, prolonged memory shortages could slow the PC upgrade cycle over the next several quarters. Companies with strong supply chains and pricing power are likely to perform better than smaller rivals.
Investors should closely watch memory availability, pricing trends and AI PC demand, as these factors will play a major role in shaping the industry's recovery over the next two years.
Of the leading vendors, Dell Technologies and Lenovo each sport a Zacks Rank #1 (Strong Buy) at present. Meanwhile, HP and Apple each carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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