Memory Price Surge Sinks PC Sales and Threatens Cheap Devices

What happened?

According to Omdia, global shipments of desktop PCs, laptops, and workstations fell 3.6% in the second quarter of 2026 to 65.7 million units. This is the first contraction in two years, since the post-pandemic rebound. The main reason is not weak demand but the rising cost of memory (DRAM and NAND), whose prices have skyrocketed due to growing demand from data centers dedicated to artificial intelligence. PC makers have passed these extra costs to consumers, dampening purchases, especially in the entry-level segment. This phenomenon is not isolated: it also affects budget smartphones, where memory is a critical component. The paradox is that AI, which promises to democratize access to technology, is making essential components for low-cost devices more expensive.

Why is it important?

The PC market was already in a post-pandemic replacement cycle, with a shipment peak of 348.8 million units in 2021 (according to IDC). But rising memory prices threaten to prolong device replacement cycles and reduce technology accessibility. DRAM prices have doubled in the past year, according to TrendForce, and NAND has risen 60%. This directly impacts manufacturers' costs: for example, a low-end laptop with 8GB of RAM and 256GB of storage may have seen its bill of materials increase by about $30-40, which is passed on to the consumer. Moreover, the phenomenon extends to other devices: budget smartphones also suffer from rising memory chip costs, potentially leaving millions of users without access to devices with minimum capabilities for modern applications. AI, paradoxically, is making essential components for digital democratization more expensive. This scenario recalls the semiconductor crisis of 2021-2023, but with a different origin: then it was due to widespread excess demand; now it is due to the concentration of memory production among a few manufacturers (Samsung, SK Hynix, Micron) that prioritize high-margin chips for AI.

Market consequences

• Lower sales volume: PC makers (Lenovo, HP, Dell, Apple) will see reduced margins or be forced to raise prices, which could further depress demand. Lenovo has already announced a 5-8% price increase on its consumer lines for the third quarter, according to Reuters. HP and Dell may follow suit.
• Low-end threatened: Laptops and smartphones under $300 could disappear or see reduced features, widening the digital divide. In emerging markets like India and Africa, where devices under $200 account for over 40% of sales, the impact will be greater. Xiaomi and Realme have already cut RAM capacity in their budget models to maintain prices.
• Slowed innovation: Manufacturers may delay adoption of new technologies (such as DDR5 or PCIe 5.0) to contain costs. The transition to DDR5, already slow, is slowing further: according to Omdia, DDR5 penetration in new PCs fell from 45% in Q1 to 38% in Q2 2026, as it is more expensive than DDR4.
• Impact on second-hand market: Used PC prices have risen 15% year-over-year, according to Back Market, as consumers seek cheaper alternatives.

What should readers know?

If you are considering buying a PC or smartphone, the timing is not ideal: prices are rising and the entry-level offering is shrinking. It may be advisable to wait for the market to stabilize or look for deals on previous generations. For example, laptops with DDR4 and SATA SSDs are still a viable option for basic tasks. Also, keep an eye on memory price trends, which will set the pace for the coming quarters. Artificial intelligence, the driver of this increase, could also bring mid-term solutions with new compression methods or more efficient memories, such as CXL (Compute Express Link) or phase-change memory (PCM) technologies. However, these alternatives will take at least two years to reach the consumer market. In the meantime, consumers will need to adjust their expectations: devices with 8GB of RAM and 256GB of storage could become the new high-end standard, rather than mid-range.

"AI is literally devouring available memory, and that translates into more expensive devices for everyone." — Analyst at TheVortiq.

In summary, the PC market contraction is not a symptom of economic weakness but a distortion caused by AI demand. Until memory supply adjusts or cheaper alternatives emerge, prices will remain high and the digital divide could widen. Manufacturers will need to balance innovation with affordability, while consumers will have to be more strategic in their purchases.