- Updated: February 26, 2026
- 2 min read
HP PCs Face Rising Costs as RAM Now Makes Up 35% of Bill of Materials
HP PCs Face Rising Costs as RAM Now Makes Up 35% of Bill of Materials
Memory shortages and soaring DRAM prices are reshaping the economics of personal computers. In its latest earnings call, HP revealed that RAM now accounts for roughly 35 % of the bill of materials for its consumer PCs – a dramatic jump from just a few years ago.
The company warned that the continued price pressure on memory chips is forcing it to adjust pricing strategies and margin expectations. Analysts note that the higher RAM share could translate into steeper retail prices for customers, especially for higher‑end configurations that rely on larger memory capacities.
HP’s CFO explained that the surge in RAM costs is driven by a combination of supply‑chain constraints, increased demand from data‑center workloads, and geopolitical factors affecting semiconductor manufacturing. While the company is exploring alternative sourcing options and negotiating better terms with suppliers, the short‑term outlook remains challenging.
For a deeper dive into the original reporting, read the full story on Ars Technica.
Related insights you might find useful:
- RAM Price Trends in 2026
- HP PC Market Analysis – Q1 2026
- Semiconductor Supply‑Chain Issues Impacting PCs
Stay tuned for more updates on how component cost fluctuations are influencing the broader PC landscape.