How AI Datacenters Triggered a PC Price Shock
PC price increases are being driven by a memory shortage impact, where AI datacenters soak up the most advanced DRAM and NAND chips, leaving fewer and more expensive components for consumer notebooks and desktops and forcing manufacturers to raise prices while cutting back on configurations and shipment volumes. IDC expects average PC prices to rise by up to 17.3% this year as shortages persist and vendors scramble for supply. In European distribution alone, average notebook prices are already up 11.4% year-on-year and desktop prices are up 10.5%. At the same time, shipments are forecast to fall 11.3% this year, with a possible 20% drop by the fourth quarter as the DRAM supply crisis deepens. Buyers are responding by delaying upgrades and holding onto older systems longer, which further weakens demand for new PCs despite higher price tags.
DRAM Supply Crisis: AI Servers Take 70% of High-End Chips
The heart of the problem is a DRAM supply crisis created by soaring AI datacenter demand. IDC reports that AI datacenters are on track to consume 70% of global high-end DRAM output this year, leaving the PC market to fight over what is left. Memory makers are redirecting capacity to higher-margin high-bandwidth chips used in AI servers, where contracts are larger and more profitable than traditional PC deals. According to Context, the cost of memory has more than quadrupled—up around 414% in 12 months—severely squeezing OEMs such as Dell, whose executives say they are spending “a tremendous amount of time” on supply challenges. With lead times for advanced nodes stretching to a year and production fully booked, PC vendors face a choice between paying higher prices, shipping with less RAM, or delaying product launches.
NAND Boom: Record Revenue While PCs Get Starved
NAND flash, used in SSDs, is following a similar pattern: AI datacenter demand is driving record revenue while PC builders struggle with shortages. Counterpoint Research data shows NAND revenue surging 3.5 times year-on-year to reach USD 46 billion (approx. RM211.6 billion) in a single quarter, with enterprise buyers already accounting for 43% of the NAND market and projected to exceed 60% by year-end. This AI hyper-cycle mirrors the growth seen in DRAM and further tightens supply available for consumer PCs. As suppliers chase lucrative AI contracts, PC makers see SSD costs rise and lower-priority orders pushed back. The result is fewer affordable configurations and less discounting at retail. Budget systems are hit hardest, as vendors reserve limited NAND for more profitable premium notebooks targeted at professional and creator workloads.
Rising Notebook and Desktop Prices Reshape the Market
The memory shortage impact is reshaping the PC landscape. Context data shows notebook price rise trends of 11.4% and desktop increases of 10.5% year-on-year through early Q2, even as unit sales fall 3% for laptops and 7% for desktops in European distribution. IDC warns that average PC prices could climb as much as 17.3% this year, and that many manufacturers are shifting their lineups toward higher-end devices to protect margins. Consumers are already seeing fewer mid-range options, more premium SKUs, and systems with less RAM than in recent years, sometimes dropping back to 8GB configurations that may not meet new AI assistant requirements. Apple’s USD 599 (approx. RM2,754) MacBook Neo is a rare low-cost bright spot, putting pressure on rivals but not enough to offset broad PC price increases.
What Buyers Can Expect Through the End of the Shortage
Analysts see little quick relief. IDC does not expect the memory crunch to ease before the end of 2027, meaning PC price increases and constrained configurations could be a multi-year reality. Many customers have already pulled purchases forward to get ahead of hikes, which helped lift Q1 shipments but is now “front-loading demand rather than signaling sustained growth,” according to Counterpoint Research. As AI datacenter demand keeps absorbing DRAM and NAND, PC makers will likely prioritize premium notebooks and desktops, while low-cost models remain scarce or ship with minimal memory. For buyers, that means planning upgrades carefully, watching configuration details closely—especially RAM capacity—and acting fast when a good deal appears. For the industry, it marks a rough stretch where AI profits come at the expense of mainstream PC affordability.
