HP Reports RAM Costs Now Represent 35% of PC Manufacturing Expenses Due to Memory Shortage
By
jnord
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Summary
HP Inc. CFO Karen Parkhill revealed that RAM costs have dramatically increased from 15-18% to 35% of HP PCs' bill of materials due to a severe memory shortage. This cost increase is contributing to higher PC prices and reduced customer demand, with HP expecting double-digit declines in its Personal Systems business this year.
Key quotes
· 3 pulledRAM 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
In an illustration of the severity of the current memory shortage, HP Inc. CFO Karen Parkhill said that RAM has gone from accounting for 'roughly 15 percent to 18 percent' of HP PCs' bill of materials
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