“Entry-Level PC Segment Will Disappear by 2028,” Says Gartner, as Soaring Memory Costs Start to Cripple Manufacturers

PC manufacturers won’t find it viable to offer hardware to gamers at ‘entry-level’ prices, as memory costs have reached unprecedented levels.

Gartner Says That Manufacturers Have No Option Left Other Than Raising PC Prices to Adjust to Rising Memory Costs

DRAM shortages have impacted several consumer-focused industries, but the consequences for the PC industry are the most disruptive. We have seen hardware prices soar to new heights, product launches delayed, and inventory levels drop rapidly across retail markets, all because the memory supply isn’t enough to meet demand. A new Gartner market report reveals that PC shipments are expected to drop by 10.4% in 2026, more than the smartphone market, making ‘budget builds’ an obsolete term.

The sub-$500 entry-level PC segment will disappear by 2028.

– Ranjit Atwal, Sr Director Analyst at Gartner

One of the primary reasons manufacturers cannot address the demand from budget PC gamers is that memory costs have risen sharply in product BOMs, driven by surging DRAM prices. For lower-budget products, manufacturers have traditionally tried to absorb the rise in BOMs, since a price hike usually means consumer interest will wane. But in the current situation, PC manufacturers are ultimately ‘bound’ to pass on the cost pressure to customers. This means PCs in the $500- $1,000 range will suffer the most.

Gartner estimates that consumers will find it much better to hold off on PC purchases, which is why PC lifetime is expected to increase by 20% by the end of this year. Unfortunately, manufacturers have few options left to combat the situation, and Gartner expects them to “accept a unit volume decline to sustain profitability”, which implies that retail availability of PC products will suffer moving ahead. The inflation in memory prices will reflect much more aggressively in Q2 of this year, given that existing DRAM inventory levels are depleting.

The PC industry isn’t in a great place for gamers, especially those on a tight budget. And when you look at potential solutions to the rise in PC prices, the only viable one is to avoid purchases until memory shortages cool down, which could take a year or more.

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