PC Prices Surge Due to Memory Shortages, Laptops See 11% Increase
DRAM and NAND shortages worsen, pushing average laptop prices in Europe up by over 11% year-on-year and desktops by over 10%. A production shift toward AI server memory hits the consumer PC market hard.
AI Demand Disrupts the PC Market
The rapid spread of generative AI is causing significant ripples in the consumer PC market. In Europe, the average selling price of laptops has risen by 11.4% year-on-year, while desktop PCs have seen a 10.5% increase. The root cause lies in the supply crunch of memory components like DRAM and NAND.
Memory manufacturers are focusing their resources on producing high-bandwidth memory (HBM) for AI servers, which offers higher profit margins. This shift has directly driven up the cost of consumer PC memory, with memory prices soaring over fourfold in just 12 months. These increased costs are being passed on to the final product prices.
Market Shifts Reflected in Numbers
Data from market research firm Context highlights structural changes in the PC market.
In the first six weeks of Q2 2026, mobile PC sales revenue through European distribution channels grew by 12%. However, unit sales fell by 3% for laptops and 7% for desktops. This paradoxical situation—higher prices, fewer units sold, but increased revenue—has emerged.
Desktop PC revenue also rose by 2%, but the larger drop in unit sales nearly offset the revenue gains from price hikes.
Marie-Christine Piggott, a senior analyst at Context, explained, “The strong growth in Q1 was supported by stockpiling in anticipation of price increases. In Q2, this temporary stockpiling phase ended, leading to a sharp decline in unit sales.”
She added, “Nevertheless, revenue continued to rise due to significant increases in average selling prices and a broader market shift toward high-end devices.”
Consumer “Panic Buying”
In Q1, consumers showed a clear tendency to “panic buy” in anticipation of price hikes. Worried about future increases, many brought forward their purchases, which led to a subsequent slump in sales volumes in Q2.
This trend is expected to persist. With the construction boom for AI data centers showing no signs of slowing down, memory price increases are forecasted to continue through the end of 2026 and potentially into 2027.
PC Manufacturers Adjust Strategies
Just as memory manufacturers are prioritizing high-margin products, PC makers are adopting strategies to make the most of limited components. Specifically, they are focusing on premium laptops and high-end desktops rather than lower-cost mainstream models.
In a recent earnings call, Lenovo emphasized “profitability improvement” in the current challenging environment due to component shortages. The company has made clear its strategy to shift toward higher-priced products.
Dell COO Jeff Clarke also spoke about addressing supply issues, saying, “We are spending an enormous amount of time dealing with this.” Clarke noted that older semiconductor production lines are operating at full capacity, while cutting-edge nodes are fully allocated. Lead times for key components like DRAM, NAND, CPUs, and hard drives are now as long as a year.
The Side Effect: Growth in the Second-Hand Market
The surge in PC prices has also affected the second-hand market. Consumers avoiding new PC purchases are turning to the refurbished market, which is becoming increasingly mainstream.
This shift is particularly noticeable among budget-conscious individual users, educational institutions, and small businesses, all of whom are holding back on new purchases and finding alternatives in the second-hand market.
A Structural Supply-Demand Gap Driven by AI
The current PC price surge stems from structural changes in the semiconductor market driven by the rapid expansion of the AI industry. Demand for AI semiconductors for data centers is skyrocketing, compelling memory manufacturers to prioritize high-margin products like HBM within their limited production capacity.
This is not a temporary supply shortage but a fundamental supply-demand gap that will persist as long as AI data center construction continues. The consumer PC market is being forced to compete with the massive demand from the AI sector, and this dynamic is unlikely to change anytime soon.
The challenges facing the PC market exemplify the polarization between industries benefiting from technological innovation and the consumer market bearing the brunt. This situation warrants continued attention moving forward.
Frequently Asked Questions
- Why are laptop and desktop PC prices increasing?
- The primary reason is a shortage of memory components like DRAM and NAND. Memory manufacturers are focusing their resources on producing high-bandwidth memory for AI servers, which offers higher profit margins. This has led to a supply squeeze for consumer PC memory, causing memory costs to quadruple in just 12 months. These increased costs are being reflected in higher retail prices for finished products.
- How long will the surge in PC prices last?
- As long as the construction boom for AI data centers continues, memory prices are expected to remain on an upward trend through at least the end of 2026, with some predictions extending this timeline into 2027. However, if memory manufacturers increase production or technological advancements improve supply, prices could stabilize.
- How can I save money when buying a new PC?
- Consider purchasing earlier to avoid future price increases or look into second-hand or refurbished options. In Q1, many consumers rushed to buy PCs in anticipation of price hikes, and the refurbished market is becoming a popular alternative. Additionally, since PC manufacturers are increasingly focusing on premium models, buying a device that fits your actual needs without unnecessary features can also help save costs.
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