HP says RAM now accounts for more than a third of its PC costs

"We did share last quarter that memory and storage costs made up roughly 15 percent to 18 percent of our PC bill of materials, and we now currently estimate this to be roughly 35 percent for the year. She also confirmed that part of the company's response will be price increases."

"PC component costs have been skyrocketing as AI infrastructure buildout creates extraordinary demand amid limited supply. HP says that squeeze is now hitting PC memory especially hard, with RAM now accounting for 35 percent of a system's overall cost."

"HP interim CEO Bruce Broussard that while he believe the market will rationalize over time the company is doing its best to add new suppliers as well as expand lower cost-sourcing for memory."

PC component costs have doubled year-over-year as AI infrastructure buildout creates extraordinary demand for memory and storage amid limited supply. RAM now accounts for 35 percent of a PC system's overall cost, up from 15-18 percent previously. HP and Samsung have announced price increases in response to these shortages. HP reports that 35 percent of its PC sales are AI PCs, though the industry shows mixed signals about consumer demand. Memory manufacturers like Micron have shifted focus from consumer brands to B2B supply to meet AI demands. Other components are also experiencing supply pressure as AI continues consuming significant portions of available memory resources.

Read at Engadget