Devices Benchmark

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Updated: March 10, 2026

Vendors are preparing to navigate fluctuating component costs over the next several quarters

• Total devices revenue among benchmarked vendors grew for the sixth consecutive quarter during 3Q25, expanding in the single digits as vendors reported increasing commercial PC sales due to gradually recovering demand, as well as strong growth in smartphone revenue.
• Revenue expanded in each of the five benchmarked devices segments during 3Q25, with the PC market experiencing the strongest year-to-year growth.

 

 

• Benchmarked devices’ gross margin contracted an estimated 30 basis points year-to-year to 25.5% as vendors’ cost-saving efforts and an industrywide focus on premium device sales were more than offset by the impacts of tariffs and price competition.
• To reduce costs in the long term, PC vendors are carefully tracking component and warehousing prices, making strategic component purchases when appropriate.

 

 

 

Apple’s latest round of product announcements included a new ultra-thin iPhone model, as well as the typical base model, Pro and Pro Max

Key development

Following its usual yearly release cycle, Apple updated its flagship product portfolios during September and October to prepare for the holiday season. This includes the iPhone 17 Series, the most notable entry of which is the iPhone Air, a new ultra-thin model positioned at a price point between the base model iPhone 17 and the Pro and Pro Max, taking the place typically held by the Plus model. The company also released the latest in its M-series of proprietary silicon chips, the M5, as well as the first round of devices to integrate this chip: the latest iPad Pro, 14-inch MacBook Pro and Apple Vision Pro.

Strategies

• By designing its own chips, Apple can more effectively integrate AI into its portfolio by fine-tuning software to align with the capabilities of its hardware. This is particularly vital as Apple continues to build out its Apple Intelligence platform, including upcoming enhancements to Siri. Owning its own chip production, including its wireless modems in the form of its C-series chips, also gives Apple more control over its supply chain, reducing its reliance on partners such as Qualcomm.
• As Apple promotes its new offerings, the company will look to maintain and expand its already massive market share by tapping into industry trends such as AI and health & wellness, and user concerns such as data privacy.

Impact

Apple reported strong initial results for the iPhone 17 family during its 3Q25 earnings call, although sales were slowed by constrained supply. It remains unclear how the iPhone Air will be received by the general public over the long term, as Apple has only commented on demand for new iPhones at the aggregate level. However, reports suggest that the model likely underperformed expectations, with suppliers such as Foxconn and Luxshare scaling back production of the new model as early as October.

To maintain its lead in the AI PC market, Lenovo continues to roll out solutions designed to accelerate ROI for these devices

Key development

Alongside a range of product announcements stretching across its PC, tablet and peripherals businesses, in September Lenovo announced its new AI Agent Pilot Program. Developed as part of the company’s ongoing partnership with Intel, the new offering is powered by Intel’s AI Assistant Builder and provides customers with a set of tools to build out and deploy on-device generative AI solutions.
 

 

Strategies

• This pilot represents an expansion of Lenovo’s existing AI PC Fast Start and efforts to encourage AI PC adoption by providing users with tailored support and resources for quickly maximizing the productivity gains these devices offer.
• To best differentiate its AI PC lineup from the competition and encourage users to adopt these devices, Lenovo is focused on leading AI PC engagements by making solutions plug-and-play as well as directing customers through each stage of the purchase and deployment process. This includes helping customers assess which PCs their end-user personas need as well as configuring platforms such as Microsoft Copilot and Lenovo’s AI Now software.

Impact

TBR believes that Lenovo currently holds the highest AI PC mix among its Windows OEM peers, at a reported 33% of PC shipments in 3Q25. HP Inc. exceeded 30% during the quarter, while Dell did not report a mix figure, suggesting it is falling behind expectations. Lenovo will continue to expand its suite of services supporting AI PC deployment and management as it works to maintain and extend this lead over the next several quarters.

Dell remained the largest benchmarked PC services vendor while Lenovo and Apple led in terms of year-to-year growth during 3Q25

 

Explore deeper data and analysis

TBR’s Devices Benchmark tracks the performance of 10 leading devices vendors across five segments: PC, PC services, smartphone, tablet and smart device. The report includes overviews of quarterly performance and industry trends within each segment, as well as more detailed analysis of vendors’ quarterly revenue, profitability and business strategies at both a corporate and product category level.
 
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