Memory cost surges threaten global PC and smartphone markets

Surging memory costs are expected to significantly impact the global personal computer and smartphone markets. Gartner forecasts that combined DRAM and SSD prices could rise by approximately 130 percent by the end of 2026. This price surge is projected to drive worldwide PC shipments down 10.4 percent and smartphone shipments down 8.4 percent in 2026 compared to 2025 levels, marking the steepest contraction in over a decade.

As memory becomes a larger portion of the bill of materials—projected to rise from 16 percent of PC costs in 2025 to 23 percent in 2026—manufacturers face a choice between absorbing costs or passing them to consumers. This shift may lead to the disappearance of the sub-$500 entry-level PC segment by 2028.

In response to these market pressures, manufacturers like Lenovo are navigating the landscape with diverse chipset architectures. Recent hardware developments include the Lenovo IdeaPad Slim 3, which utilizes Intel’s low-cost Wildcat Lake chipset series designed for everyday computing and lower power consumption.