Rising memory costs could wipe out sub-$500 PCs

By Phong Ngo March 8, 2026 | 06:59 pm PT

A sharp rise in memory prices could drive PC makers away from laptops and desktop computers priced under $500, market research firm Gartner said.

Gartner forecasts that prices for memory components such as DRAM and SSDs could rise by up to 130% by the end of this year, which may push PC and laptop prices up 17% compared with 2025.

The surge could prompt consumers to hold onto their computers longer rather than upgrade, making it harder for PC manufacturers to absorb higher costs, tech site CNET reported.

"Ultimately, we expect the sub-$500 entry-level PC segment will disappear by 2028," Gartner senior director analyst Ranjit Atwal said.

The volatility in component prices is largely driven by soaring demand for memory chips used in AI systems. Manufacturers are prioritizing orders for data centers over consumer electronics such as personal computers and routers. At the same time, retailers selling PC components have raised prices amid unusually strong demand, pushing overall costs higher.

A person uses a latop. Photo illustrayion by Pexels

"Memory prices are expected to rise well into 2027, and as a result we'd expect devices to rise during this period as well," IDC analyst and research manager Jitesh Ubrani told The New York Times. "PCs [and] smartphones are likely to see price increases particularly in the second half of the year."

Experts recommended buying a laptop now while 2025 models are still available at close-to-2025 prices, or budgeting 20% to 30% more than usual later this year.

Smartphones are facing similar pressure, and rising memory costs could also lead to the disappearance of the cheapest models.

In a recent report, research firm IDC said the global supply of memory chips will remain strained this year, affecting the smartphone industry and forcing manufacturers to adjust strategies by reducing specifications or eliminating entry-level models that generate little profit.

Low-cost devices are expected to be the most affected. IDC senior research director Nabila Popal said the days of cheap smartphones are "gone," and memory prices are unlikely to return to 2025 levels even after supply pressures ease.