HP says memory's contribution to PC costs has doubled

"Memory now accounts for 35 percent of the cost of materials it needs to build a PC, up from between 15 and 18 percent last quarter. And the company expects RAM's contribution will rise through the year."

"The company has secured long-term supply agreements for the year and also qualified new suppliers, built in strategic inventory positions for key platforms and cut the time to qualify new material in half to accelerate product configuration changes."

"The company is using its internal AI initiatives to power those new processes and is configuring products and shaping demand to align the supply we have with customer needs while taking targeted pricing actions to offset the remaining cost impact."

HP Inc. faces significant cost pressures as memory now represents 35 percent of PC material costs, up dramatically from 15-18 percent the previous quarter, with expectations for continued increases. To manage these challenges, the company secured long-term supply agreements, qualified new suppliers, and built strategic inventory positions while cutting material qualification time in half. HP expanded lower-cost sourcing, reduced logistics costs through AI-powered planning processes, and is configuring products to align supply with customer demand. The company implemented targeted pricing actions in partnership with channel and direct customers. Despite tariff uncertainties following recent Supreme Court decisions and subsequent administration actions, HP stated it does not expect negative impacts. PC sales grew strongly, with consumer purchases up 14 percent and business purchases up 11 percent year-over-year.

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