HP feels pressure as company says RAM prices are nearly one-third of total PC cost: ‘We now currently…’
Times of India
by TOI TECH DESKFebruary 25, 2026
AI-Generated Deep Dive Summary
HP Inc. has disclosed that RAM now accounts for 35% of the materials needed to build a PC, up from 15-18% last quarter. This significant increase in memory costs has led to a decline in Personal Systems Operating Profit (PSOP) margins, which are expected to fall below long-term targets. CFO Karen Parkhill revealed that RAM costs rose by approximately 100% sequentially and are projected to continue increasing throughout the fiscal year.
Despite these challenges, HP interim CEO Bruce Broussard highlighted measures taken to mitigate the impact, including securing long-term supply agreements, qualifying new suppliers, and building strategic inventory positions. The company is also optimizing product configurations, managing demand alignment with available supply, and implementing targeted price adjustments in collaboration with partners. Additionally, HP has expanded lower-cost sourcing and streamlined logistics processes through agile planning.
HP’s personal systems division reported $10.3 billion in revenue, a 11% year-over-year increase, driven by higher consumer PC purchases and Windows 11 adoption. Patel noted that AI PCs are gaining traction, with 35% of HP's sales now featuring AI capabilities, contributing to demand growth.
The article underscores the industry-wide challenge of rising component costs, particularly RAM, and highlights HP’s strategic responses to maintain profitability. The situation reflects broader supply chain dynamics affecting the PC sector, emphasizing the importance of adaptability in managing material price fluctuations and supply shortages.
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Originally published on Times of India on 2/25/2026