Dell Technologies DELL Client Solutions Group (CSG) has been gaining traction, particularly in the commercial PC market, which includes notebooks, desktops, workstations, and peripherals for enterprise customers.
The commercial PC segment's growth is a critical driver for Dell's overall Client Solutions Group (CSG), which saw a 5% revenue increase to $12.5 billion in the first quarter of fiscal 2026. The company has experienced five consecutive quarters of year-over-year growth in the commercial PC market. Commercial Client revenues increased 9% year over year to $11.04 billion in the fiscal first quarter.
The company is a prominent PC maker and is expected to benefit from the recovering demand driven by the PC-refresh cycle. It is benefiting from the Windows 11 PC refresh cycle as many enterprise customers upgrade to new AI-capable Windows 11 devices, driving strong demand in the commercial segment.
Dell's commercial PC demand has been strongest in North America, where it holds the #1 market share with 32.4%. Additionally, regions like Europe, the Middle East, and Africa (EMEA) and Asia Pacific and Japan (APJ) have seen double-digit growth in the first quarter of fiscal 2026, showcasing Dell's ability to cater to diverse markets globally.
Product innovations have also played an important role in Dell's success in the commercial PC space. The company's streamlined AI PC portfolio, featuring advanced processors, longer battery life, and enterprise-grade security, has positioned it as a leader in the AI era.
Dell Technologies suffers from stiff competition in the PC market from the likes of HP HPQ and Apple AAPL.
HPQ is benefiting from a sustained focus on launching new and innovative products. The growing interest in generative artificial intelligence-enabled PCs, along with Windows 11 upgrades and a probable PC refreshment cycle, is likely to drive fresh demand for PCs in 2025.
The growing interest in generative AI-enabled PCs might give a fresh boost to HP's PC demand in the years ahead. The company forecasted that 40-60% of all PCs will be AI PCs in the next three years. To make the most of the growing opportunities in this category, HP has launched several AI PCs this year and plans to continue to expand its AI PC portfolio.
Apple's Mac business is benefiting from strong demand for M4, M4 Pro, and M4 Max chips. In the third quarter of fiscal 2025, Mac sales of $8.05 billion increased 14.8% year over year and accounted for 8.6% of total sales. Solid demand for the M4 MacBook Air drove Apple's top-line growth. Apple saw double-digit sales growth in emerging markets and double-digit growth in both the number of upgraders and new Mac customers.