Monday Morning Impact – July 13
Omdia: US PC shipments Mark Steepest Decline Since 2023
The latest research from Omdia shows that US PC shipments (excluding tablets) fell 7.0% year-over-year in Q1 2026 to 15.8 million units; the largest annual decline since Q3 2023.
The downturn is attributed to component supply constraints and cost pressures from surging PC memory and storage prices, compounded by a demand hangover following the Windows 11 refresh cycle, which had exhausted much of the near-term commercial pipeline.
With DRAM and NAND supply increasingly diverted to AI server applications, rising component costs are eroding vendor margins on entry-level devices, making low-priced PCs increasingly unviable, according to Omdia. Shipments of PCs priced under $500 declined 18.7% year-on-year in the quarter. Omdia expects industry-wide declines to continue throughout the remainder of 2026 as supply tightness persists, with full-year US PC shipments forecast to decline 14.4% compared to 2025.
“The impact of component supply constraints on PC shipments materialized in the US market in the first quarter of 2026,” said Scott Braverman, Senior Analyst at Omdia. “The consumer segment declined 9.5% year-over-year, worse than the overall market, as many consumers delayed purchase decisions amid higher price tags and challenging economic conditions. Business shipments declined by just 5.0% year-over-year, supported by remaining Windows 11 refresh activity and inventory purchases ahead of further price increases.”
While average selling prices rose just 4% year-on-year in Q1 2026, Omdia expects growth to reach 12% in Q2 and exceed 12% in the second half of 2026 as supply-side headwinds continue to materialize. Business PC ASPs are expected to grow 11% in 2026, with 10% ASP increases in the consumer and government segments. Education ASPs are expected to remain flat as this cost-conscious segment delays PC refreshes due to rapid pricing increases.
Vendor performance varied significantly in Q1 2026, reflecting difference in segment exposure and pricing dynamics. HP’s 21.6% decline in shipments was the steepest drop among major providers and resulted in HP losing its top spot in the US in Q1 2026. Dell captured the lead with a 25.0% share, posting 1.1% growth despite overall market contraction, while Lenovo also achieved growth of 1.2% to reach 20.0% of the market.
Channel Impact®
Partners should note that, according to Omdia’s May forecast, the first half of 2026 is likely to be the stronger period for business PC demand. The component cost environment is expected to keep entry-level prices elevated through 2027, suppressing consumer demand.
Netgear launches Automation Platform for SMEs and MSPs
Netgear has unveiled “Insight 10.0,” the next generation of the San Jose-based networking company’s cloud network management platform and a major step in the company’s AI strategy for SMEs and MSPs.
The platform combines AI operations, cloud-native management, operational intelligence, and automation capabilities, establishing the framework for AI-powered operations and future AI-defined networking capabilities.
“The future of networking is about giving organizations the intelligence to operate increasingly complex environments with confidence,” said Pramod Badjate, President and GM of Netgear Enterprise. “As AI transforms every business, networks must become more adaptive, more automated, and easier to operate. Insight 10.0 is the foundation for our vision of AIOps and AI-defined networking for the millions of small and medium-sized organizations that have historically been underserved by enterprise networking solutions.”
Insight 10.0 provides a view of network performance, device health, connectivity, and user experience from a single platform. Through contextual insights, proactive recommendations, and AI-assisted workflows, the platform is intended to help IT teams and MSPs identify issues faster, reduce manual effort, and shift from reactive troubleshooting toward predictive operations.
Channel Impact®
Insight 10.0 is designed to bring enterprise-grade intelligence, AIOps, and operational simplicity to SMEs and similar resource-restricted organizations.
Scality Rebuilds Channel Program
Scality, a San Francisco-based AI infrastructure software company, has rolled out a reimagined partner program, designed to deliver greater value, stronger economics, and a clearer growth path for its global community of resellers and distributors.
According to the company, the market for enterprise data infrastructure is being reshaped by three forces that are creating new addressable opportunities for channel partners: the rapid build-out of AI infrastructure, the urgent enterprise need for cyber resilience, and the rising importance of sovereign control over data.
Each of these forces creates customer demand that favors partners with solid economics, enablement, and a program structure aligned to consultative, expertise-driven sales.
The updates program features a new ‘Authorized’ tier with a lowered entry threshold for new partners, with a structured progression path towards the Select and Elite tiers as skills increase and commercial engagement grows.
Partners who invest in certifications, technical upskilling, and co-generation of demand benefit from higher discounts. The discount difference between the Authorized and Elite tiers was unspecified, but is described by the company as “substantially more pronounced than before.” Opportunity registration has been simplified and offers extended protection, allowing partners to invest in long sales cycles with minimized risk.
The program also includes a strengthened training catalog, with pathways for each partner profile.
The new Scality Partner Program is currently available. Existing partners will be transitioned into the new tier structure with support from their channel managers.
Channel Impact®
The new program is intended to reward expertise, pipeline creation, and the ability to address three simultaneously fast-growing markets: cyber-resilience, digital sovereignty, and AI infrastructure.
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