HP: Memory and storage now cover third of the PC cost

HP reported a sharp increase in the share of RAM in the cost of personal computers. According to the company’s CFO, Karen Parkhill, while last year’s memory and storage costs accounted for 15-18% of the total component cost, this figure is now approaching 35%.

This refers to the combined costs of RAM and storage systems. The nearly doubling in a year has become one of the most noticeable changes in the PC manufacturer’s cost structure.

Shortage amid AI and data center boom

The company cites a surge in demand for artificial intelligence infrastructure as the main reason for the price increase. Active data center construction and large-scale AI projects have intensified competition for memory supplies. With limited supply, this has led to shortages and rising prices.

HP confirmed that it will partially offset the increased costs by raising prices for personal computers. Samsung had previously warned of a possible rise in electronics prices due to memory shortages.

An attempt to stabilize and grow the AI ​​PC segment

HP Acting CEO Bruce Broussard announced that the company is diversifying its supply chains and expanding its procurement through more lucrative contracts. At the same time, HP expects the component market to gradually stabilize.

At the same time, the manufacturer is seeing growing demand for PCs with AI capabilities. According to the company, such devices already account for approximately 35% of sales.

According to HP, the shortage affects more than just memory. Supply constraints are also being felt in the graphics processing unit (GPU) segment, which is critical for systems designed for artificial intelligence (AI) workloads.