HP stated that memory and storage now account for over a third of PC component costs

HP stated that memory now accounts for over a third of the cost of its personal computers. According to CFO Karen Parkhill, while last year the costs for memory and storage accounted for 15-18% of the total component cost, this year the figure has increased to approximately 35%.

What is known

The reason is the rapid increase in demand for AI infrastructure. The active deployment of data centers and large-scale AI projects have created a memory shortage amid limited supply. HP confirmed that they will partially compensate for increased costs by raising PC prices. Samsung had also warned of possible price hikes due to memory shortages.

Interim HP CEO Bruce Broussard stated that the company is trying to diversify suppliers and expand purchases at lower prices while expecting a gradual market stabilization. The company also notes an increase in demand for AI-enabled PCs, which already make up 35% of its sales.

The shortage is also felt in other components, including GPUs.

Source: Yahoo Finance