How the Memory Crisis Is Repricing the Entire PC Market
The current memory crisis is a global shortage of DRAM and NAND flash that is pushing up RAM and SSD prices, diverting supply to higher‑margin AI servers, and forcing PC makers to increase notebook and desktop prices while shipping fewer units and prioritizing premium models. IDC projects that average PC prices could rise by up to 17.3% this year as a direct memory shortage impact, even while total shipments are expected to fall by 11.3%. Context reports that average notebook prices have already climbed 11.4% and desktop prices 10.5% in early Q2, despite declining unit sales. At the same time, memory makers are directing more capacity to high‑bandwidth memory for AI server demand, where returns are higher than in consumer PCs. For buyers, this means fewer bargains, longer waits, and steeper notebook and desktop costs for configurations with more RAM and larger SSDs.
RAM and SSD Prices Rising as AI Servers Absorb Supply
RAM and SSD prices rising across the board are the clearest signal of how AI server demand is reshaping the market. Team Group CEO Gerry Chen says AI‑related workloads now account for around 40% to 50% of the entire memory market, spanning both DRAM for system RAM and NAND for SSD storage, and most production planned for 2026 and 2027 already has buyers lined up. Over the past year, DDR5 kits and consumer SSDs have become noticeably more expensive, and the broader cost of memory has more than quadrupled in 12 months. The high demand for HBM and DRAM for AI GPUs has led to what UBS calls a “tight market,” with prices in some memory segments jumping as much as 414%. As long as AI data centers keep scaling up, PC builders remain stuck paying more for every gigabyte they put into a notebook or desktop.
Double‑Digit PC Price Increases and a Shift to Premium Models
PC price increases are now visible in the average selling prices flowing through distributors. Context data shows notebook prices up 11.4% year‑on‑year and desktop prices up 10.5% in the first six weeks of Q2, even as notebook unit sales fell 3% and desktop units dropped 7%. IDC expects average PC prices overall to increase by up to 17.3% this year, with many vendors either raising prices or delaying shipments when they cannot secure enough memory. Early‑year channel stocking and panic buying, highlighted by Counterpoint Research, pulled demand forward as buyers tried to beat further RAM and SSD price hikes. With memory makers steering output toward higher‑margin AI chips, PC brands are also concentrating on higher‑end notebooks and desktops to protect earnings. The result for consumers is fewer low‑cost options, especially for configurations with larger RAM and SSD capacity, and more emphasis on premium designs.
Dell’s Margin Squeeze Shows How Painful Memory Costs Have Become
Dell illustrates how rising component costs from the memory shortage are reshaping PC economics. UBS notes that PC manufacturers have had to bear memory prices that are 110% higher as they secure DRAM and NAND in a tight market, and warns that the impact of these rising costs on Dell’s PC and server business “is expected to be more severe in the second half of calendar 2026 into the first calendar quarter of calendar 2027.” Dell has benefited from a 757% jump in AI server revenue and strong overall growth, but higher DRAM and NAND costs threaten its gross margins as the revenue mix tilts toward AI infrastructure. Even if the rate of memory price increases slows after early 2027, UBS does not expect a meaningful decline in prices. For mainstream PCs, that means sustained pressure on bill‑of‑materials costs and limited room for discounting.
What PC Buyers Should Expect Next
For buyers planning a new PC, the memory shortage impact will shape prices and configurations for years. IDC says the shortage is unlikely to ease before the end of 2027, and that PC makers will “struggle to maintain full product portfolios” as they ration limited DRAM and NAND. Notebook and desktop costs are rising fastest for models with more RAM and bigger SSDs, where component exposure is highest. Many consumers are already responding by holding onto existing machines longer, and by pulling purchases forward when they expect further RAM and SSD prices rising. There are still pockets of value: IDC points to the USD 599 (approx. RM2,760) MacBook Neo as a “notable wildcard” that helps keep some low‑cost options alive. But in general, buyers should budget more for memory‑heavy systems and act quickly if they see a configuration they want at a reasonable price.
