- HP says memory accounts for around 35% of the cost of a PC, up from 15-18% in one quarter
- The company, and analysts, expect volatility to continue for some time yet
- HP consumer devices are still selling strong, but Canalys anticipates costly impacts
HP has revealed the cost memory now accounts for around one-third (35%) of its PC bill of materials, up from around 15-18% last quarter, making a seriously sharp increase.
And worse still, the company is expecting memory chip price volatility to continue well into next year, largely driven by demand for AI data center components which is straining consumer supply.
Looking ahead, HP expects the RAM’s percentage in the bill for PCs to rise before it stabilizes or decreases, spelling out potential knock-on price increases for consumers.
HP says computer memory is getting more expensive
To mitigate some of the price hikes, HP has secured long-term supply agreements and qualified new suppliers to diversify its supply. And even though the company blames AI for pushing costs up, it’s also using AI in its supply chain planning to cut costs across areas like logistics.
The company is combining multiple approaches, including increasing end costs and reconfiguring devices, to retain healthy margins and not to pass on such sharp price hikes to consumers.
HP Interim CEO Bruce Broussard praised strong Personal Systems performance including “continued momentum in AI PCs.” The company posted a 6.9% year-over-year increase in quarterly revenue. Personal Systems (PS) revenue rose 11%, with Consumer PS revenue up 16% and Commercial PS revenue up 9%.
HP isn’t alone in feeling the pinch, though, as the entire industry gears up to absorb or pass on increasing costs. “Demand for conventional DRAM is surging alongside HBM as AI inference workloads scale, driving an exceptional short-term price rally,” Omdia Senior Principal Analyst Lino Jeng noted.
A separate Omdia post hints at a potential decline in the semiconductor market, had AI not stepped in and created such a surge.
Looking ahead, Omdia’s researchers predict continued “supply-side pressures” and “cost increases being passed through to customers” following 40% to 70% rises in PC memory and storage costs throughout calendar 2025.
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