From WCCFTech, March 1:
PC manufacturers won't find it viable to offer hardware to gamers at 'entry-level' prices, as memory costs have reached unprecedented levels.
Gartner Says That Manufacturers Have No Option Left Other Than Raising PC Prices to Adjust to Rising Memory Costs
DRAM shortages have impacted several consumer-focused industries, but the consequences for the PC industry are the most disruptive. We have seen hardware prices soar to new heights, product launches delayed, and inventory levels drop rapidly across retail markets, all because the memory supply isn't enough to meet demand. A new Gartner market report reveals that PC shipments are expected to drop by 10.4% in 2026, more than the smartphone market, making 'budget builds' an obsolete term.
The sub-$500 entry-level PC segment will disappear by 2028.
- Ranjit Atwal, Sr Director Analyst at GartnerOne of the primary reasons manufacturers cannot address the demand from budget PC gamers is that memory costs have risen sharply in product BOMs, driven by surging DRAM prices. For lower-budget products, manufacturers have traditionally tried to absorb the rise in BOMs, since a price hike usually means consumer interest will wane. But in the current situation, PC manufacturers are ultimately 'bound' to pass on the cost pressure to customers. This means PCs in the $500- $1,000 range will suffer the most....
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And as we noted exiting from a February 8 post:
You will also see Apple and Samsung focus on high-end, higher margin phones as they try to squeeze every available penny of profit from those memory chips they are able to acquire.
Also at WCCFTech:
The New Memory Prices Quoted by Samsung & SK Hynix for Q2 Are So ‘Absurd’ That Buyers Might Find It Better to Give Up
Earlier today, Bond Vigilantes on possible macro effects:
Memory: "The inflation spark that could become a deflation shock?"
