Framework Faces Third Month Of Rising Ram Prices Amid Global Chip Shortage
The memory and storage chip shortage continues to affect the technology industry, with modular …
02. March 2026
Pc Entry-Level Laptops Vanish As Prices Skyrocket 130 By 2026
The entry-level PC market is expected to “disappear” by 2028, according to a recent forecast published by research firm Gartner. The decline of this market segment can be attributed to a sharp increase in combined DRAM and SSD prices, which are projected to surge by 130% by the end of 2026.
As a result of this price shock, PC prices are expected to rise by 17% compared to 2025 levels, making it less feasible for consumers to purchase entry-level laptops under $500. This trend is likely to drive global PC shipments down 10.4% this year, the steepest annual contraction in over a decade, as consumers and businesses hold onto existing hardware rather than upgrade.
The root cause of this component inflation is largely due to the increasing demand for memory and storage solutions. DRAM (Dynamic Random Access Memory) is a type of computer memory that provides temporary storage for data and applications, while SSDs (Solid-State Drives) offer faster storage options compared to traditional hard disk drives. The growing need for AI-powered devices has driven up demand for these components, leading to higher prices.
Gartner’s forecast projects that by the end of 2026, memory costs will climb from 16% to 23% of a PC’s total bill of materials. This shift is significant enough to eliminate vendors’ ability to absorb costs on low-margin products, making entry-level laptops under $500 financially unviable.
“This sharp increase removes vendors’ ability to absorb costs, making low-margin entry-level laptops nonviable,” said Ranjit Atwal, senior director analyst at Gartner. “Ultimately, we expect the sub-$500 entry-level PC segment will disappear by 2028.”
The trend is not limited to the entry-level market; it also affects premium-tier hardware, where AI PCs require more onboard memory to run local inference workloads. As a result, Gartner now projects that AI PCs will reach 50% market penetration before the end of the decade, which was previously expected to happen by 2027.
The impact of rising memory prices on the PC market is far-reaching, with longer upgrade cycles following directly from higher prices. According to Gartner, PC lifetimes will extend by 15% for business buyers and 20% for consumers by the end of 2026, which raises concerns about security vulnerabilities on aging hardware.
To mitigate this risk, vendors need to adapt their strategies in response to the changing market landscape. Gartner advises device vendors and channels to accept unit volume decline rather than cutting prices to chase budget buyers. “Overall, device vendors and channels face a critical window in the first half of 2026 to optimize pricing and protect margins before component inflation compresses profitability from the second quarter onwards,” Atwal said.
As the PC market shifts towards higher-end products, demand is likely to concentrate at the top end of the spectrum. Vendors that can absorb component inflation without destroying profitability will be better positioned to succeed in this new landscape.
The impact of rising memory prices on smartphones is also significant, with shipments projected to fall 8.4% this year. Gartner estimates that basic smartphone buyers will exit the market five times faster than premium buyers in 2026 as rising costs push consumers toward refurbished or second-hand alternatives.
Gartner’s forecast covers other electronic devices that rely on memory and storage solutions, such as gaming consoles and laptops. These devices are likely to be affected by the same component inflation trends, leading to potential price increases and changes in consumer behavior.
As we move forward, it is essential for consumers and businesses to stay informed about market trends and adjust their purchasing strategies accordingly. With the rise of AI-powered devices, memory and storage solutions will play an increasingly critical role in shaping the future of technology.
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