That's roughly double from the previous year as component costs keep rising.
Add Engadget on GoogleJim Young / reutersThe cost of PC components has been skyrocketing as AI infrastructure buildout creates extraordinary demand amid limited supply. HP says that squeeze is now hitting PC memory especially hard, with RAM now accounting for 35 percent of a system’s overall cost.
"We did share last quarter that memory and storage costs made up roughly 15 percent to 18 percent of our PC bill of materials, and we now currently estimate this to be roughly 35 percent for the year," said CFO Karen Parkhill on the companys latest earnings call. She also confirmed that part of the companys response will be price increases. Samsung similarly warned of potential price increases due to AI-induced memory shortages.
Higher prices have unfortunately become the norm for PC shoppers, especially in 2026, and the RAM crisis is playing a major role. HP interim CEO Bruce Broussard said that while he "believe the market will rationalize over time" the company is doing its best to add new suppliers as well as expand lower cost-sourcing for memory.
HP executives also said they are seeing stronger AI PC demand, saying 35 percent of HP’s PC sales are coming from AI PCs. This comes as the industry is seeing mixed signals, like Dell saying that consumers dont really care about AI PCs.
AI has been eating up the worlds supply of memory and companies like Micron have even abandoned their consumer brands to focus entirely on B2B supply. Other components like GPUs have also been feeling the pressure.
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