HP warns rising memory prices will soon make PCs more expensive: 5 key things to know
HP warns that soaring memory prices could soon make PCs more expensive, with DDR5 costs up over 200%. The company may raise prices, cut specs and switch suppliers.
HP’s CEO says rising memory prices are becoming a real problem. DDR5 RAM prices have shot up by more than 200 percent in recent weeks, and HP warns this surge will eventually affect its computers. The company has enough memory stored for now, but the CEO says this situation cannot be avoided for long.
HP can manage the impact only for the next few months. Because the company has built up a memory stockpile, it expects to handle the rising costs during the first half of its financial year. But from May onward, the higher prices will start affecting the profit HP makes from selling PCs.
HP plans several steps to deal with the rising costs. The company may switch to cheaper suppliers, redesign some computers to use less memory, and speed up its AI based cost cutting plans. HP also expects to raise product prices, working closely with retailers and direct buyers to decide where and how much to increase.
HP warns that lower priced PC models will be hit the hardest. When memory prices rise, the most affordable computer categories usually feel the most pressure. HP says any price hikes will be handled carefully, on a country by country and product category basis, rather than increasing prices everywhere at once.
Other PC makers say price hikes are coming too. Brands like CyberPowerPC and Maingear have already warned shoppers to buy now before prices go up. The memory shortage is being blamed on huge demand from AI data centers, and experts say this could last for years. Some companies may even cut storage by up to 50 percent.
