AI devices gaining ground as PC and smartphone markets weaken
Global notebook and smartphone shipments are expected to decline in 2026, but AI-enabled devices are capturing a larger share of both markets. Component shortages and rising chip prices are driving the shift.
The slowdown in traditional consumer devices reflects broader market pressures. Memory price increases are hitting smartphone makers harder than notebook manufacturers, according to recent analysis of industry trends.
What this means for sales teams
For professionals selling into hardware and component markets, the trend signals opportunity in a narrowing total addressable market. Customers are consolidating purchases around AI-capable devices rather than replacing older models with equivalent non-AI alternatives.
Notebook shipments have benefited from early 2026 orders ahead of expected supply constraints. The memory shortage is forcing buyers to be more selective, prioritizing devices with AI functionality that justify premium pricing.
Smartphone makers face steeper headwinds. Rising memory costs are squeezing margins across the category, making AI features a potential differentiator for devices at higher price points.
The supply chain angle
Component value is shifting upward as manufacturers prioritize AI-capable architectures. This creates sales opportunities for suppliers positioned in edge AI and inference capabilities, where demand is outpacing traditional consumer electronics growth.
Buyers are making fewer total purchases but spending more per unit on devices with AI capabilities. Understanding which customers are moving toward this mix-and which are still focused on volume-will separate effective sales strategies from those that chase declining segments.
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