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According to industry sources, PC manufacturers are facing mounting operational challenges this year as rising component costs and higher software expenses put additional pressure on pricing. Following significant increases in memory, SSD, and CPU prices since last year, Microsoft has recently raised Windows OEM operating system licensing fees, creating a “double increase” in both hardware and software costs. As a result, PC brands are expected to raise end-product prices by around 5% in the third quarter.

PC industry executives noted that Microsoft adjusts Windows OEM licensing fees annually. In previous years, these increases were generally limited to single-digit percentages. However, starting in July 2026, the average increase has reached approximately 7% to 10%, marking a notable acceleration compared with previous adjustments.

The licensing fee structure varies depending on the processor configuration of each PC model. Industry executives explained that Windows OEM pricing is linked to CPU tiers, meaning devices equipped with Intel Core i3, i5, or i7 processors may face different licensing costs. Higher-performance processors typically result in higher operating system fees, leading to varying cost impacts across different PC products.

PC manufacturers indicated that the latest Windows licensing increase has already been partially reflected in product pricing. However, many consumers and enterprise customers may not notice the impact of the software cost increase alone because other key components have experienced much larger price hikes this year. The overall rise in PC prices has been driven by multiple cost factors, making individual adjustments less visible.

Since the second half of last year, strong demand from AI servers has redirected supply toward high-performance computing applications, contributing to shortages and price increases for memory, SSDs, and CPUs. Among these components, memory prices have risen sharply and have become one of the largest contributors to additional PC manufacturing costs.

Although PC price adjustments vary by region, major Taiwan-based PC brands have already indicated further increases. ASUS and Acer have both suggested that PC product prices in the third quarter may increase by around 5% or a single-digit percentage range.

ASUS executives previously stated that, as of May 2026, prices for some ASUS PC products in Taiwan had already increased by nearly 30% compared with the fourth quarter of 2025. The company expects further price adjustments in the third quarter, although the increases are likely to remain within a single-digit range.

According to Counterpoint Research, global PC shipments are projected to reach approximately 65 million units in the second quarter of 2026, representing a 4% year-over-year decline. This would mark the first contraction in the global PC market since the first quarter of 2025.

Counterpoint Research noted that Windows migration cycles and the growing adoption of AI PCs continue to support some commercial replacement demand. However, continuously rising memory prices and component costs are squeezing PC manufacturers from both sides, creating additional challenges for profitability and product pricing strategies.