Gartner, a firm specializing in “High Tech” industry insights, has said that it is expecting big changes for consumers due to rising memory costs. The report is one of many that continue to expose the ongoing effects the current AI-boom is having on products. It’s no secret that DRAM and NAND are in short supply and will continue to be for years to come, but we’re still not at a point where consumer product manufacturers are clearly communicating to the public en masse what is happening or what to expect.
Gartner’s report (via TechPowerUp) identified a 7% BOM cost increase for PC memory in 2025 alone and expects it to be a contributing factor to the future of low-end PCs by 2028. Budget-friendly PCs have managed to remain obtainable for decades thanks to continued production of legacy platforms, but with memory costs estimated to increase by another 130% before this year’s end, vendors will no longer be able to absorb those costs. So, what this report is claiming has credence in that we are approaching a milestone where the $500-ish bottom floor sales-tier is no longer a realistic target and consumers will be forced to either go without, hold onto what they have, or pay higher prices, much, much higher prices since if looking at pre 2025 memory costs, those could be double or more by comparison to what we might see by the end of the year.
“This sharp increase removes vendors’ ability to absorb costs, making low-margin entry-level laptops nonviable. Ultimately, we expect the sub-$500 entry-level PC segment will disappear by 2028,”
-Ranjit Atwal, Gartner Senior Director Analyst
While not everyone has or intends to buy a desktop or laptop in 2026, there is another market that is expected to be affected as well, smartphones. According to the report, there could be a major drop at the basic smartphone tier, where buyers’ budgets are much tighter and may choose to opt out of buying or upgrading to a new phone this year.
“The memory-driven price surge will disproportionately affect entry-level smartphones, leading buyers to choose refurbished or second-hand models or keep their phones longer. Premium smartphones will be less affected because of their higher margins.
Gartner analysts expect basic smartphone buyers to exit the market five times faster than premium buyers in 2026.”
– Gartner
Consumers are not the only ones who will need to be on the watch for rising prices, and businesses looking to replace staff devices should be acutely aware of what to expect. As mentioned above, market conditions are affecting desktops, laptops/tablets, and phones, as well, so if there’s a project planned for this year, it’s probably a good idea to reach out to your channel partners sooner rather than later to avoid even higher costs down the road.