Memory Cost Increases: A Decade-Long Low in Device Shipments
Global PC shipments are set to drop by 10.4% in 2026 as memory cost increases reach a critical level. Enterprises and consumers are holding onto aging devices longer, driven by soaring prices for DRAM and SSDs. Gartner reports a 130% surge in memory costs by year-end, pushing PC prices up by 17% and smartphone prices by 13% compared to 2025.
How Rising Memory Prices Are Reshaping the Market
PC and Smartphone Sales on the Decline
The impact of memory cost increases is reshaping hardware markets. Gartner predicts a 10.4% decline in PC shipments and an 8.4% drop in smartphone sales in 2026. Ranjit Atwal, Gartner analyst, notes this is the lowest device shipment level in over a decade. Buyers are extending device lifetimes by 15% (business) and 20% (consumers), altering traditional upgrade cycles.
The Disappearance of Budget Devices
Memory costs now account for 23% of PC bill-of-materials (BOM), up from 15-18% in the previous quarter. HP reports RAM costs alone make up 35% of device manufacturing expenses. This trend is pushing the sub-$500 PC market toward obsolescence. Gartner warns the entry-level PC segment will vanish by 2028, delaying AI PC market penetration until the same year.
The Long-Term Implications for Businesses and Consumers
Security Risks of Extended Device Lifetimes
While cost savings appeal to buyers, holding onto older devices introduces security vulnerabilities. Outdated hardware becomes harder to manage and more susceptible to cyber threats. Enterprises face added complexity in maintaining compliance and protecting aging systems.
Vendor Strategies in a High-Cost Environment
Device manufacturers must adapt to volatile pricing. Gartner advises PC vendors to prioritize profitability over volume, avoiding price-sensitive markets that erode margins. The first half of 2026 is critical for optimizing pricing strategies before component inflation further compresses profits.
Conclusion: Navigating the Memory Cost Crisis
Memory cost increases are fundamentally altering the tech landscape. From disappearing budget devices to extended lifecycles, the ripple effects will shape hardware markets for years. Businesses and consumers must weigh cost savings against security risks and evolving market dynamics.
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