TECH NEWS – The memory crisis continues to worsen, and new budget-level pre-built PCs will be affected the most.
Due to the high cost of memory, PC manufacturers do not consider it viable to offer entry-level hardware to gamers. The DRAM shortage has affected several consumer-focused industries, but it has had the most disruptive impact on the PC industry. Hardware prices have soared, new product launches have been delayed, and retail inventories have plummeted. This is all happening because the supply of memory is insufficient to meet demand. According to Gartner‘s market forecast, PC shipments are expected to decline by 10.4% in 2026, which is greater than the decline in the smartphone market. This will make cost-effective builds obsolete. Ranjit Atwal, a senior analyst at Gartner, predicts that the entry-level PC segment below $500 will disappear by 2028.
One reason manufacturers are unable to meet cost-effective PC gamers’ needs is that memory costs have sharply risen in products’ bills of materials (BOM), driven by rising DRAM prices. For lower-budget products, manufacturers have traditionally tried to absorb BOM increases because price increases typically mean a decline in consumer interest. However, in the current situation, PC manufacturers are ultimately forced to pass the cost pressure on to buyers. This means that PCs in the $500-$1,000 price range will be most affected.
Gartner estimates that consumers will postpone PC purchases, which is expected to increase the lifespan of PCs by 20% by the end of the year. Unfortunately, manufacturers have few options to address the situation. According to Gartner, they will be forced to accept a decline in sales volume to maintain profitability. This will result in a decrease in the retail availability of PC products. The rise in memory prices will be much more pronounced in the second quarter of this year as existing DRAM inventories decline.
The PC industry is not doing well for gamers, especially those on a tight budget. The only viable solution to rising PC prices is to wait until the memory shortage eases, which could take a year or more.
