Memory costs have now doubled to 35% of the cost of materials from 15-18%, according to HP Inc. The firm reported that random-access-memory costs now make up one-third of the total costs required to manufacture a personal computer.
The company's interim chief executive officer Bruce Broussard said that the company has procured long-term supply agreements for the year. He said the firm has qualified new suppliers and built in strategic inventory positions for important platforms. He also said that HP has halved the time required to qualify new material and has ramped up its product configuration changes.
This comes off the heels of an anticipated RAM shortage across the globe, which applies not just to PCs but to smartphones and tablet computers as well. This shortage is due to memory component manufacturers such as Samsung, SK Hynix, and Micron prioritising the manufacture of High-Bandwidth Memory chips for AI data centres, which have 10 times higher margins, making the average consumer's memory needs a lot less of a priority.
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With these chips using more silicon than the domestic version, known as the domestic DDR5 PC RAM, manufacturers have reduced their focus on producing them. According to a report by PCWorld, researchers at TrendForce have predicted that price fluctuations in consumer RAM modules may take place in the spring of 2026.
To combat this price rise, the company has "expanded lower-cost sourcing" across its "commodity basket", which means that the firm has found and increased the amount of sources from whom it can purchase PC components for a lower price point.
Broussard said that HP is "taking targeted pricing actions to offset the remaining cost impact in close partnership with both channel and direct customers."
He further said that the firm is configuring its products and shaping demand to align the supply they have with the needs of their customers.
ALSO READ: Smartphone Shipments To Shrink 2.1% Globally As Input Costs Pile Up: Report
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