Rising memory costs and AI chip demand squeeze budget PC market below $500
By
Paul Kunert
Summary
Rising component costs, particularly memory and storage prices, are causing the sub-$500 PC market to shrink rapidly. Omdia data shows US distributor unit sales fell 7% year-on-year in Q1 to 15.8 million units, with HP hit hardest — losing over a fifth of sales and its top brand position. The AI server gold rush is diverting chip supply away from budget laptops, exacerbating the decline of affordable PCs.
Source
bskyRising memory costs and AI chip demand squeeze budget PC market below $500theregister.comKey quotes
· 3 pulledFewer Americans are buying PCs as rising component costs mean the sub-$500 bracket is rapidly disappearing
HP was hit hardest, shrinking by more than a fifth and losing its spot as the most purchased PC brand stateside
The decline reflects supply constraints and cost pressures from memory and storage prices
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