Memory shortages caused by AI infrastructure are fueling rising costs for PC components, with prices expected to increase by 18.3% and shortages potentially lasting until 2027, threatening to eliminate budget models and reshape the consumer market.
Memory shortages driven by artificial intelligence infrastructure are pushing up the cost of building PCs and, in turn, retail prices. IDC has forecast that average PC selling prices will rise by 18.3% in 2026, with tighter supply of DRAM and NAND flash affecting not just laptops and desktops but also smartphones and other consumer devices. The strain comes as chipmakers divert capacity towards high-bandwidth memory for AI systems, leaving less room for mainstream components used in everyday hardware.
The pressure is expected to persist well beyond next year. According to the reporting cited by Presse-Citron and market analysis from IDC, the shortage may continue until the end of 2027, while a June IDC report said prices are unlikely to return to 2025 levels even if memory output eventually improves. That means manufacturers may have to choose between absorbing higher input costs, trimming specifications or passing more of the increase on to buyers.
Windows PC makers face a further problem. Windows Central reported that Microsoft has raised Windows licence fees for original equipment manufacturers by 7% to 10%, a larger-than-usual increase that could add more upward pressure to finished device prices. The report said the fee rise applies to OEM licensing rather than consumer boxed copies of Windows 11, and that Microsoft declined to comment.
Analysts have warned that the cheapest part of the market may be the first to disappear. Gartner director Ranjit Atwal said in February that entry-level PCs priced below $500 could vanish by 2028, while Tom’s Hardware reported that IDC sees a meaningful risk of market contraction as buyers delay upgrades and vendors reduce specifications. In practical terms, that points to fewer truly budget machines and a higher floor for mainstream PC pricing over the next two years.
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