The escalating costs of memory have rendered it increasingly impractical for PC manufacturers to provide hardware options to gamers at entry-level pricing. As a result, the landscape of budget PCs may be on the verge of significant transformation.
Gartner Predicts Price Hikes Necessary for PC Manufacturers Amid Rising Memory Costs
Shortages in DRAM have sharply affected various consumer-centric sectors, but the PC market has experienced some of the most severe disruptions. The current climate has led to soaring hardware prices, delayed product launches, and dwindling inventory levels in retail, all stemming from an insufficient memory supply to satisfy soaring demand. A recent market report by Gartner forecasts a 10.4% decrease in PC shipments for 2026, a decline more pronounced than that within the smartphone sector. As a result, the concept of “budget builds” may soon be obsolete.
The sub-$500 entry-level PC segment will disappear by 2028.
– Ranjit Atwal, Sr Director Analyst at Gartner
One primary challenge for manufacturers catering to budget-conscious PC gamers lies in the rising costs associated with memory, disproportionately affecting product Bill of Materials (BOM).Historically, manufacturers would absorb increasing BOM costs to avoid scaring off consumers with price rises. However, under current conditions, they are compelled to allocate these costs to customers, meaning that potential buyers in the $500 to $1, 000 price range will face considerable burdens.
According to Gartner’s projections, consumers are expected to postpone PC purchases, leading to a 20% increase in the average PC lifespan by year-end. Manufacturers face a shrinking set of strategies to mitigate the current crisis, with Gartner suggesting they might embrace reduced unit volumes to maintain profitability. Consequently, the retail landscape for PC products is anticipated to deteriorate in the near future, especially as memory prices are likely to escalate even further in the second quarter, coinciding with dwindling DRAM inventories.
The outlook for gamers, particularly those with limited budgets, is not favorable. Observing potential remedies to the rising costs of PCs, the most prudent decision might be to delay purchases until the memory shortages stabilize—a scenario that may extend well into the next year or longer.