Elevated memory costs are impacting not only buyers but also computer manufacturers. During HP's latest quarterly earnings discussion, executives noted that around 35% of the total cost for PC components now goes toward RAM and storage, compared to 15-18% a year ago.
This figure falls short of the threefold or fourfold retail hikes faced by individual purchasers, as HP sources parts directly from suppliers. Nevertheless, a sequential doubling of memory expenses, as mentioned by Chief Financial Officer Karen Parkhill, could drive up various financial metrics unfavorably.
Companies such as HP, Dell, and Asus are benefiting from the surge in AI-related demand through data center equipment sales, yet they remain more vulnerable to fluctuations in consumer purchases of laptops and desktops. Unlike suppliers like Nvidia, Micron, and Samsung—who profit steadily from the trend—traditional PC builders are more exposed to market pressures and are actively seeking affordable alternatives, including memory from Chinese regional suppliers.
Signs suggest the sector may be stabilizing, if not improving. In areas like Germany, RAM pricing has begun to ease from peak levels. Analysts attribute this shift to a market adjustment stemming from earlier panic purchases, rather than resolved supply shortages, though data is limited for definitive conclusions. Such developments offer some optimism.
Overall, costs for standard PCs and memory-intensive consumer devices are projected to increase by 20% industry-wide. The ongoing memory shortage is anticipated to persist for several years, barring a collapse in the AI market enthusiasm.