- HP has confirmed that memory can now make up for a third of a PC’s cost.
- The company is investing in long-term memory supply and other measures to combat rising costs.
- Even with these measures in place, price hikes for RAM appear inevitable.
According to Yahoo Finance, HP has now announced that RAM accounts for more than one-third of the price of the PC.
This announcement comes shortly after the corporation raised the prices of several of its PCs in response to shifting market conditions. These shifting times are defined by a large increase in RAM costs, which has a noticeable impact on the computing industry.
RAM has become so pricey that it now accounts for 35% of HP’s overall computer production costs.
This information was given by the firm during its most recent earnings call, where Bruce Broussard, HP’s interim CEO, provided background, which was necessary to explain the decrease in sales and the subsequent reduction in future predictions.
Even though RAM is a tiny component that has little impact on the system unless it costs as much as the primary hardware, it has become more expensive than many high-end processors and graphics cards. This means that modern computers have three top-tier components, which raises prices significantly.
The main issue is a memory shortage, which has been pressuring the supply chain for months due to demand from AI infrastructure and data centers. These are the companies that are effectively absorbing all memory capacity and driving up prices.
HP, like other manufacturers, recognizes that it operates in a “dynamic” environment with escalating costs and volatile component prices.
While HP has certainly been affected, the company has stated that it is implementing a fairly aggressive set of actions. This includes ensuring a long-term memory supply, building a strategic inventory for critical platforms, and, most importantly, expediting the approval of new materials and suppliers.
Moreover, HP and other businesses would use Chinese memory to avoid shortages. HP also mentioned employing AI to optimize end-to-end operations for inventory management, logistics, and planning. This directly indicates that investors should reduce their expenditure when revenues are likewise harmed.
However, even with these quality measures, if RAM prices continue to rise, the cost will have to be offset in some way. HP is avoiding announcing an immediate, all-encompassing price rise.
But it admits to implementing “selective pricing actions” to offset the residual damage, coordinating with distributors and direct customers.
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[Editor-in-Chief]
Sajjad Hussain is the Founder and Editor-in-Chief of Tech4Gamers.com. Apart from the Tech and Gaming scene, Sajjad is a Seasonal banker who has delivered multi-million dollar projects as an IT Project Manager and works as a freelancer to provide professional services to corporate giants and emerging startups in the IT space.
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