Say goodbye to budget PCs and smartphones – memory is too expensive now

Steven

Say goodbye to budget PCs and smartphones – memory is too expensive now

Summary

Ballooning DRAM and NAND flash prices, driven largely by AI-related demand from hyperscalers, are set to push entry-level PCs and smartphones out of reach for many buyers. Gartner warns of a double-digit drop in PC shipments in 2026 and expects memory costs to keep rising through the year — a trend that will shrink choice, lift device lifetimes and boost the secondhand/refurbished market.

Key Points

  • Gartner projects PC shipments will fall by more than 10% in 2026 and smartphone shipments by around 8%, driven by soaring memory prices.
  • Some memory types have already doubled or quadrupled year‑on‑year; DRAM and NAND are forecast to rise about 130% by the end of 2026.
  • Memory now represents roughly 35% of PC build cost at HP, up from about 15–18% last quarter.
  • Vendors are losing the ability to offer entry‑level PCs (below roughly $500); budget phones are also at risk as low‑cost makers have less margin to absorb increases.
  • AI‑capable systems with NPUs require more memory and will remain premium‑priced, slowing expected mass adoption of AI PCs.
  • Organisations and consumers will delay upgrades: Gartner expects device lifetimes to increase ~15% in businesses and ~20% for consumers.
  • The shortage is demand‑side (hyperscalers) rather than a simple supply glitch and could persist through to the end of 2027.

Context and relevance

This is important for anyone buying, selling or provisioning endpoints. The AI boom is changing the semiconductor cost structure: more memory per device (for NPUs and AI features) plus sustained hyperscaler demand is inflating bills of materials. That squeezes low‑cost manufacturers, reduces entry‑level choice, and will influence procurement timing, secondhand market growth and IT refresh budgets over the next 12–24 months.

Why should I read this?

Short and blunt: if you wanted a cheap laptop or handset this year, this article explains why that’s getting harder. It saves you time by laying out the cause (AI memory demand), the likely effects (fewer sub‑$500 devices, longer refresh cycles) and what to do next (buy now if you need to refresh; expect prices to stay high).

Author style

Punchy: Gartner’s warning is a practical red flag — this isn’t just market noise. If device pricing, corporate refresh planning or consumer choice matters to you, read the detail so you can act rather than react.

Source

Source:https://go.theregister.com/feed/www.theregister.com/2026/02/26/memory_price_hikes/