Dell says its PC sales have slowed due to changes to Windows 11
If you recall, Microsoft suggested that users trade in or recycle their old PC, and buy a new one that supports Windows 11. Are people doing this?
When asked about Windows end-of-life upgrades, Jeff Clark, COO of Dell Technologies, said that “We have not completed the Windows 11 transition. In fact, if you look at it relative to the previous OS in service, we are 10-12 points behind at that point with Windows 11 compared to the previous generation.”
In case you forgot, Microsoft pulled the plug on Windows 10 on October 14, 2025. There are ways to increase security updates on Windows 10 for free. Since it’s only been a month since Windows 10 came out, it’s too early to expect users to buy new PCs to upgrade to Windows 11. But, the fact that a top executive from a PC manufacturing company said that the Windows 11 adoption rate is slow is quite significant.
according to StatCounter41.74% of desktops were running Windows 10 in October. Windows 11’s market share during the same period was 55.18%. Now, when we compare this data with the data from a year ago, Windows 10 had 60.95% of the market share in October 2024, while Windows 11 had 35.58%. The difference is huge, and you might think Windows 11 is growing in popularity. However, when you look at recent data, the trend has slowed down considerably. Windows 10 declined by just 2% in September 2025, while Windows 11 saw a 3% increase.
Why? Millions of PCs around the world cannot be upgraded to Windows 11 due to strict hardware requirements. These are probably the numbers that contribute to the bulk of Windows 10 users. They’re stuck on Windows 10, a small percentage of those users may have moved to Linux or Mac, and some users may have opted not to upgrade to Windows 11 due to concerns about bloat, performance degradation, and privacy. Some people may have stuck with Windows 10 because it works, why risk upgrading?
Clark also said that “the PC refresh cycle remains sustainable, supported by the aging installed base and a significant portion of systems that have not yet upgraded to Windows 11. We still have ample opportunity to convert. If memory serves me right, the installed base is about 1.5 billion dollars or 1.5 billion units. We have about 500 million of those capable of running Windows 11 that have not upgraded. We have another 500 million that “There are four years old who can’t run Windows 11.”
This is very interesting. Dell believes these are rich opportunities for it to gain some serious sales register Noted, Dell saw its revenue grow 11% year-over-year in the third quarter of fiscal 2026, reporting $27 billion in the quarter. The company said it expects revenue of $31.5 billion in the fourth quarter and $111.7 billion in fiscal 2026.
Clark said that “AI PCs, smaller language models, more capable applications, improvements in operating systems and their capabilities, and there’s embedded AI, the use of NPUs, the potential of NPUs in future PCs gives me the idea that the PC market is going to continue to thrive.” Dell reported revenue of $10.1 billion from servers and networking kits last quarter, up 37% year-over-year. But he also said the PC market will remain roughly flat year over year. You can read the transcript of Dell’s earnings call here Luck,
But we also have to take into account end-users, I’m not sure AI will drive PC sales, most AI services are cloud-powered, you just need a browser or desktop app to use them. Not many people will get a PC specifically for AI purposes. CoPilot+ PCs do exist, but they may not seem like an attractive option for the average buyer who may simply need a reliable computer.
There’s something else to consider, too. RAM prices are skyrocketing, which will also impact computer sales. Dell says it is prepared to meet demand, as it has learned valuable lessons in supply chain management during the COVID-19 pandemic. If you look at the overall market, it is quite bad right now. Console prices have increased significantly this year. Many of these have been affected by tariff policies.
How are you? Have you purchased a new computer, or upgraded your old system to move to Windows 11?
Thanks for reading..
