RAM now represents 35 percent of bill of materials for HP PCs

"We have seen memory costs increase roughly 100 percent sequentially, and we do forecast that to further increase as we move into the fiscal year. We are seeing increased input costs driven primarily by the rising prices of DRAM and NAND. We expect this volatility to remain throughout fiscal [year 2026] and likely into fiscal [year 2027]."

"RAM has gone from accounting for roughly 15 percent to 18 percent of HP PCs' bill of materials in its fiscal Q4 2025 to roughly 35 percent for the rest of the year. HP expects the total addressable market for its Personal Systems business to decline by double digits this calendar year, as higher prices hurt customer demand."

HP Inc. faces severe memory shortage impacts, with RAM costs doubling sequentially and rising from 15-18% to 35% of PC bill of materials. The company expects the Personal Systems market to decline by double digits this calendar year due to higher prices reducing customer demand. Memory cost increases of roughly 100% are forecast to continue rising throughout fiscal 2026 and into 2027. DRAM and NAND price volatility will most severely impact HP's financials in the second half of fiscal 2026. To maintain profitability despite elevated RAM expenses, HP has raised PC prices while one-third of Personal Systems margins come from non-RAM categories like IT services and peripherals.

Read at Ars Technica