Budget PCs under $500 will disappear by 2028, analysts say

Skyrocketing memory costs are poised to trigger a significant shift in hardware pricing.

Market research firm Gartner predicts the extinction of the sub-$500 PC segment within the next two years. This transition is being fueled by a dramatic surge in memory prices, which is already placing immense pressure on the global technology landscape.

In its latest industry report, Gartner experts suggest that the worldwide spike in component costs will continue to stifle hardware sales throughout this year and beyond. Projections indicate that by 2026, global PC shipments will contract by 10.4% compared to the previous year, while smartphone deliveries are expected to decrease by 8.4%.

By the end of 2026, DRAM and SSD prices are forecasted to soar by 130%. This inflationary trend will likely drive up PC retail prices by approximately 17% over 2025 levels, with smartphones seeing a 13% hike. As a result, the share of memory costs within the total manufacturing budget of a new computer is expected to jump from 16% to 23%.

Senior analyst Ranjit Atwal points out that retailers will find it increasingly difficult to absorb these rising expenses. Budget laptops and entry-level systems traditionally operate on razor-thin profit margins; given the current pricing trajectory, selling these devices could soon become a loss-making venture.

Several industry leaders are already flagging potential production bottlenecks. Apple and Tesla have warned of likely manufacturing constraints. Furthermore, Valve’s Steam Deck is frequently listed as out of stock—a scenario the company previously noted could become commonplace due to the ongoing scarcity of memory and storage modules.

Source: iXBT.games