Endpoint Devices Suffer a Disastrous Quarter: Two Hardware Markets, Two Recovery Timelines

Endpoint devices suffered a disastrous third quarter, with global smartphone and PC shipments each falling about 20% year over year. As consumers keep devices longer and remain unimpressed about the current crop of so-called AI PCs, enterprise AI infrastructure is pushing server CPU demand higher, creating two hardware markets with different recovery timelines. ITAD companies and recyclers will have to mature beyond volume-based processing, building the technical depth and enterprise-grade controls required to manage specialized server equipment. Continue reading below.

Number of readers who accessed this analysis : 148

Smartphones and PCs are in the midst of a severe contraction and slower replacement cycle, while server CPUs are entering a new growth phase.

Asset flows are getting harder to read, even when the broader market is behaving as expected. Endpoint device shipments fell sharply in the third quarter of 2026, while AI inference workloads pushed server CPU demand higher. The latest shipment figures point to a structural split in computing demand — a Dr. Jekyll-and-Mr. Hyde moment for OEMs, asset-management firms and their partners. Consumers are keeping smartphones and PCs longer as AI operators build out server capacity. The two markets are sending different signals, and recyclers need to track both.

This analysis is reserved for clients subscribing to the Pulse Service.

Already a subscriber? Log in here.

Subscribe to Pulse
Book a 90-Minute Analyst Presentation

Premium Content from ITAD Market Pulse

Book Analyst

Analyst/Author: David Daoud | Principal Analyst

David Daoud has researched the mainstream IT hardware market since 1996 and expanded into hardware disposition research in 2003. He has spearheaded the creation of IDC’s GRADE certification. Since then, David has been providing consulting and expert advice to companies looking to establish best practice in their IT equipment decommissioning and helped leading ITAD service providers assess demand, understand competition, and forecast what’s to come. David is currently the Principal Analyst at Compliance Standards, which focuses entirely on the end-of-life of IT equipment. He can be reached at 754-229-0095 or at ddaoud@compliance-standards.com

Subscribe to ITAD Market Pulse

ITAD Global Regulation & Compliance: A Quiet Summer for E-Scrap Laws, With Progress on Repair, Packaging and Enforcement

by David Daoud | Principal Analyst | Aug 24, 2026 | Regulation, Pulse, 1regcheck, AITeaser, Compliance and Enforcement

A quiet summer for major e-scrap legislation still brought important compliance developments across regions. New EU repair and packaging requirements, tighter Southeast Asian enforcement of e-waste import restrictions, and continued U.S. state-level activity are raising the importance of repair capacity, shipment documentation, battery procedures and packaging compliance for ITAD and recycling companies.

Tech Check: Where Automation Actually Pays Off in ITAD

by David Daoud | Principal Analyst | Aug 19, 2026 | Future Tech, Pulse, Data Center, Technology, Vendors, Amazon, Artificial Intelligence (AI), AITeaser

Automation is moving into ITAD, but the investment case is not simply “buy robotics.” This report examines where technologies such as robotic disassembly, computer vision, AI sorting, testing, and chain-of-custody platforms can improve recovery value, throughput, compliance, and reporting. The key is to automate the operating constraint, starting with the workflows where manual handling is costing margin or creating risk, establish a baseline, and invest only where technology delivers measurable economics and evidence.

Corporate Strategy: Paladin EnviroTech: Strategic Positioning in the Critical Materials Recovery Market

by David Daoud | Principal Analyst | Aug 18, 2026 | Vendors, AITeaser, Paladin EnviroTech, Competitive Analysis, Pulse, M&A

Eighteen months after its founding, Paladin EnviroTech is targeting rare earths and other metals that conventional refiners don’t currently report or pay out on — an estimated 15 to 22 metals present in e-scrap waste streams. The company’s joint venture with Critical Materials Recycling is scaling rare earth recovery from 40 to 300 metric tons a year, why precious-metals refining still runs through Japan, and where Paladin’s managed-services business fits into its pitch to hyperscalers. This report unpacks the strategy, the execution risk, and what it means for corporate and OEM buyers evaluating Paladin as a partner.

Corporate Strategy: Inside ERI’s Global Playbook. What Vietnam Reveals About the Company’s Next Moves

by David Daoud | Principal Analyst | Aug 12, 2026 | Emerging Markets, Asia Geo, Markets, Companies to Watch, Industry, Pulse, ITAD, Vendors, ERI, AITeaser

ERI is betting on Asia because the region combines fast-growing IT hardware volumes with a shortage of formal, enterprise-grade disposition infrastructure. After expanding its U.S. footprint, ERI’s next growth opportunity lies in markets such as Japan and Vietnam, where data-center buildout, electronics manufacturing and digitalization are increasing equipment retirements faster than secure, transparent ITAD capacity. By partnering with ITOCHU and VSD Holdings, ERI gains local market access while bringing its own data-security, traceability and closed-loop recycling model to markets still shaped in part by informal recycling.

ITAD M&A Activity: Transaction Trends, Buyer Strategy and Market Direction

by David Daoud | Principal Analyst | Aug 11, 2026 | Competitive Analysis, Industry, ITAD, Pulse, M&A, AITeaser

Twenty-two ITAD transactions closed between October 2024 and July 2026. Deal frequency held flat year over year, but composition shifted: private equity platforms moved from opportunistic bolt-ons to stated, multi-deal roll-up programs, buyers began acquiring governance and program-management capability alongside processing capacity, and materials companies with no prior ITAD history took equity positions tied directly to data-center hardware lifecycle value.

« Older Entries

Intel’s CapEx Tops $20B on Server Demand While PC Volume Shrinks: ITAD Firms Should Plan for Two Separate Asset Cycles

by David Daoud | Principal Analyst | Jul 28, 2026 | AITeaser, 1 In the News, Pulse, Intel, Corporate Strategy

Intel’s second quarter added a concrete data point to what has otherwise been a quarter of announcements: the company is raising 2026 capital spending to more than $20 billion, roughly $3 billion above its prior plan, and told investors that 2027 spending will go significantly higher still. This capital plan carries more weight for the end-of-life sector than the earnings beat. It points to the size of the fleet now entering production.

Alphabet’s 2Q2026 Results: More Capital Spending and Cloud Backlog

by David Daoud | Principal Analyst | Jul 27, 2026 | Pulse, Vendors, Google, Corporate Strategy, AITeaser, 1 In the News

Alphabet’s Q2 2026 earnings call put a number on the AI buildout: $44.9 billion in quarterly capex, with guidance raised to $195–$205 billion for the year. For ITAD and recycling providers, the real story isn’t the revenue growth, it’s the asset volume that spending signals down the line.

M&A: Sumitomo Takes Equity Stake in U.S. ITAD Firm GreenTek, Betting on AI-Driven Hardware Disposal

by David Daoud | Principal Analyst | Jul 14, 2026 | GreenTek, M&A, Sumitomo, AITeaser, Investment & Policy, Mature Markets, Markets, Competitive Analysis, Pulse

Sumitomo Corporation has taken an equity stake in GreenTek Solutions, a Texas-based IT asset disposition firm, becoming an equity-method affiliate as it enters the U.S. ITAD market amid AI-driven data center hardware turnover.

Corporate Strategy: Blancco Bets on the Drive, Not the Device, as It Chases a Recover-First IT Market

by David Daoud | Principal Analyst | Jul 13, 2026 | Data Security, Companies to Watch, Pulse, Vendors, Compliance, Blancco, Corporate Strategy

Blancco is rebuilding its business around the ‘drive’, not the device, betting that surging AI infrastructure and component scarcity are pushing ITAD from “destruct-first” to “recover-first.” The company’s new strategy centers on data-bearing drives, data center decommissioning, and mobile, positioning certified erasure and diagnostics as the backbone of a market where assets move fluidly between enterprises, processors, and secondary channels.

Opinion: The Sims Leadership Changes Point to a Broader Generational Shift Across the ITAD Industry

by David Daoud | Principal Analyst | Jul 9, 2026 | Management, Competitive Analysis, Pulse

Sims Limited’s executive leadership changes this week may be evidence of a generational transition surfacing across the industry regardless of ownership model, as the leaders who built ITAD over the past two decades begin handing off to whoever comes next.

« Older Entries

OUR PRODUCTS & SERVICES

1. OFF-THE SHELF SERVICES



Analyst-on-Retainer

Gain flexible, on-demand access to our specialized industry analysts with the Analyst-on-Retainer plan. This service provides your organization with dedicated expert time each month to validate strategy, research competitors, and get direct input on critical trends in ITAD, sustainability, and AI. Empower your entire team—from sales to leadership—to make informed, data-driven decisions without the cost and commitment of a full-scale consulting project. This is the entry level service that provides you with full analyst focus and attention. To learn more and/or subscribe, follow this link.



Sector Pulse

Published research on the mega trends and factors affecting ITAD, sustainability and circular IT, from ESG, AI and IT decommissioning to plant technology and economics. To learn more and/or subscribe follow this link.



Risk Advisory

We provide comprehensive risk management and compliance solutions to safeguard your organization. Our expert services deliver assurance through formal reports like SOC 2, ISO 27001, and HIPAA readiness assessments. We also strengthen your internal controls with IT SOX audits and manage your third-party vendor risks, ensuring your operations are secure, compliant, and resilient from every angle. This service is best suited for vendors who must upgrade their ISMS practices and companies on the end-user side looking to incorporate ISMS in their vendor selection and procurement requirements. Learn more here.

2. CUSTOM ENGAGEMENTS



Marketing Content

We produce unique content that clients can leverage in their marketing campaigns. With unique data from CS, clients can transform themselves into thought leaders. We do the work behind the scenes, helping customers improve their image, attract attention and win new customers. CONTACT US TO INQUIRE.



GtM Support

There are two sections in this offerings. First is the consulting service to help you plan your go-to-market, sales, marketing and PR Strategies. We provide you with support to understand your prospective clients and competition. Then there is the execution with sessions to reach prospective clients. We leverage our relationships with media giants to reach an audience of IT services buyers and promote you with marketing and leads generations. CONTACT US TO INQUIRE.



Competition Check

In our competitive anlyses, we assess the reputation of ITAD vendors from the perspective of their clients and employees. This service is best suited for end-user companies doing due diligence on their current or potential vendors, investment stakeholders and even ITAD executives interested in a different perspective on competition. CONTACT US TO INQUIRE.



Industry Surveys

We conduct industry surveys to assess where the sector is headed. These surveys are typically multi-client sponsored. We welcome companies interested in sponsoring these surveys. We also conduct ITAD-specific surveys, engaging with ITAD leaders to gauge the health of the sector and outlook. Contact us to learn more. CONTACT US TO INQUIRE.