MC EXCLUSIVE Laptop prices set for up to 35% jump as memory, GPU costs spike; market may contract 8% this year

Laptops

• Laptop and desktop prices may rise up to 35 percent this year
• RAM and processor shortages are driving price increases
• PC shipments expected to decline 7–8 percent by end of 2026

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Consumers planning to buy laptops or desktops may have to pay up to 35 percent more this year, as the prices of key components, including processors and GPUs, continue to surge, affecting affordability.

The increase is being driven largely by to skyrocketing DDR RAM prices and shortage of entry-level Intel processors, analysts said.

After record PC shipments in 2025, volumes are likely to decline up to 8 percent this year, market trackers IDC and Counterpoint told Moneycontrol.

India PC market, including desktops, notebooks and workstations, recorded it strongest year in 2025, shipping 15.9 million units, up 10.2 percent from the previous year, IDC said.

It was also the first time that annual shipments crossed 15 million units, surpassing the Covid-driven peaks in FY21 and FY22.

The year ended on a strong note, with shipments reaching 4.1 million units in the December quarter, an 18.5 percent year-on-year growth.

HP continues to be in the lead followed by Lenovo, Dell, Acer and Asus, with all major players recording shipment growth in 2025.

A disruption in the Strait of Hormuz, a critical energy and petrochemical route, could further raise input costs for semiconductor manufacturing, which may impact the pricing and availability of components and chips. The effect of a prolonged disruption would likely be indirect and delayed rather than immediate, industry experts said.

Up, up and away

Rising component costs are beginning to push up device prices. RAM is already up 2.5 to 3 times, pushing laptop and desktop prices up by around 10–12 percent, so far.

Another 8–10 percent increase is expected in March, with a further 10 percent rise likely over the next few months, as component costs continue to climb, Bharath Shenoy, senior market analyst at IDC India, said.

Devices that earlier sold in the Rs 30,000–35,000 range are moving closer to Rs 45,000, making upgrades harder for students, home users and first-time buyers, Shenoy said.

Prices could continue to rise for the next six to seven quarters and may not ease until the second half of 2027, prompting some customers to advance purchases, retailers and industry watchers said.

Enterprises and small businesses, too, are bringing forward upgrade cycles to avoid paying higher prices later.

Higher prices to lower demand

While this advance buying could keep the market relatively stable in the first half of the year, IDC expects consumer demand to weaken as higher prices begin to discourage purchases.

Overall, shipments of PCs and laptops could decline by the end of 2026, as the full impact of rising costs filters through.

“Our early estimate suggests a high single-digit decline year-on-year, roughly 7–8 percent, across both the consumer and commercial PC segments,” Shenoy said.

The cost pressure is being felt globally, analysts say.

Memory pricing is currently one of the biggest near-term cost risks for the PC industry, Anshika Jain, senior analyst at Counterpoint Research, told Moneycontrol.

“The sharp increase in DRAM and NAND prices is being driven primarily by AI infrastructure demand, which is pulling supply toward high-margin server and high-bandwidth memory segments. This is increasing the bill-of-material costs for device manufacturers globally,” Jain said.

Entry-level buyers may delay purchases or opt for lower-spec models, while premium and professional segments such as gaming, creators, and enterprise users are less price-sensitive and will continue to drive demand, she said.

To soften the impact of rising costs, brands are also exploring ways to keep devices accessible. Analysts said companies are adjusting product configurations, running promotional campaigns and offering financing schemes to support demand.

Shenoy said large enterprises had already completed many upgrades last year due to the Windows refresh cycle, while SMBs and mid-market companies had initially adopted a wait-and-watch approach.

The recent spike in prices, however, pushed many of them to go ahead with purchases sooner than planned, helping the market remain resilient for now.

All India Mobile Retailers Association founder-chairman Kailash Lakhyani said laptop prices — much like smartphones — have been increasing every month since November.

The trend will escalate due to rising memory costs, dollar volatility, inflation, and the impact of the West Asia conflict, he said.

Assembled computer prices have skyrocketed due to extreme memory pricing and black-market activities, he said. “The government and brands must take strict action against grey and black market players who are exploiting these shortages to overcharge consumers,” he said. This is the best time to purchase these devices before further hikes,