[Edaily Reporter JAEMIN SONG ] The boom in the memory semiconductor market, driven by growing demand for artificial intelligence (AI), is weighing on the global PC market. As demand for memory used in AI servers surges, component prices are soaring; these higher costs are being passed on to finished products, leading to a decline in PC demand. For SamsungElectronics and LGELECTRONICS, managing the profitability of their PC businesses—including the Galaxy Book and Gram lines—has emerged as a key challenge.

According to market research firm IDC on the 12th, global PC shipments in the third quarter of this year totaled 62.7 million units, a 20.1% decrease compared to the same period last year. This marks a significantly sharper decline than the 3.8% drop recorded in the second quarter. Notably, even in the third quarter—when shipments typically rise ahead of the new school year and year-end sales—shipments fell by 9.1% compared to the previous quarter, marking an unusually weak performance.

Analysis from Omdia, another market research firm, paints a similar picture. Omdia reported that global PC shipments in the third quarter totaled 58.1 million units, a 21.2% year-over-year decline. Demand slowed across all product categories, with laptop and desktop shipments falling by 20.6% and 23.5%, respectively. Although there are differences in the calculation methods used by various research firms, they all agree that the PC market has entered a phase of sharp contraction.

Behind this slump lies the sharp rise in memory prices. As demand for high-performance memory increased due to expanded investment in AI data centers, prices for DRAM and NAND flash rose in tandem, placing a greater burden on PC manufacturers to procure components. According to Omdia, the share of DRAM and solid-state drives (SSDs) in PC production costs has risen from approximately 15% to nearly 40%.

The problem is that the more manufacturers pass on these higher costs to product prices, the more consumer demand shrinks. Although manufacturers have successively raised prices, they have not been able to fully offset the increased costs. Analysts suggest that inventory secured in anticipation of price hikes in the first half of the year has also become a burden, further fueling the decline in shipments in the second half.

Even amid the PC market contraction, companies with a high proportion of high-value-added products appear to be relatively less affected. According to Omdia, HP’s third-quarter shipments plummeted 31% year-over-year, while Apple’s declined by only 11%. Analysts note that since demand for premium products is relatively less affected by price hikes, performance differences among companies are widening depending on their product mix and pricing strategies.

Domestic manufacturers are also responding by focusing on premium products. SamsungElectronics is leading with the Galaxy Book, and LGELECTRONICS with the Gram, focusing on product differentiation through AI features, high performance, and lightweight designs. Although SamsungElectronics posted its highest-ever operating profit in the third quarter and LGELECTRONICS’ cumulative operating profit exceeded 4 trillion won, profitability pressures in the finished goods business due to rising memory prices and the PC market downturn remain a separate challenge.

A market recovery is not expected anytime soon. Omdia forecasts that global PC shipments will decline by 24% year-over-year in the fourth quarter and by 7% annually next year. As memory demand continues to expand, driven primarily by AI servers, cost management and pricing strategies will become even more critical for PC manufacturers.

An industry official stated, “As memory demand grows, driven primarily by AI servers, the burden on PC manufacturers to procure components is also increasing,” adding, “With memory prices remaining strong, the key to securing profitability will be how much of the cost increase can be passed on to product prices.”