HP says RAM now accounts for more than a third of its PC costs

Source: Engadget

Overview

The cost of PC components has been skyrocketing as AI infrastructure build‑out 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 company’s latest earnings call. She also confirmed that part of the company’s response will be price increases. Samsung similarly warned of potential price increases due to AI‑induced memory shortages.

HP’s Response

Interim CEO Bruce Broussard noted that while the market is expected to “rationalize over time,” HP is working to add new suppliers and expand lower‑cost sourcing for memory.

Industry Context

• AI PC demand: HP executives reported that 35 percent of HP’s PC sales are coming from AI PCs.
• Mixed signals: Other vendors, such as Dell, claim that consumers don’t prioritize AI PCs.
• Memory shortages: AI workloads are consuming the world’s supply of memory. Companies like Micron have shifted focus from consumer brands to B2B supply.
• Other components: GPUs and other parts are also feeling pressure from the same supply constraints.

This article originally appeared on Engadget.
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