HP Says Memory's Contribution To PC Costs Just Doubled To 35%

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by msmash

February 25, 2026

AI-Generated Deep Dive Summary

HP has revealed a significant increase in memory costs contributing to PC manufacturing, with memory now accounting for 35% of material costs, up from 15-18% previously. This rise is expected to continue throughout the year, potentially impacting PC pricing and availability. The sharp increase reflects broader challenges in the global supply chain, driven by rising demand and limited supply. HP's interim CEO highlighted efforts to mitigate these issues, including securing long-term supply agreements, expanding lower-cost sourcing, and qualifying new suppliers more efficiently. These moves aim to stabilize costs and ensure product availability despite market volatility. HP is also leveraging internal AI initiatives to optimize its supply chain processes, improving logistics planning and accelerating product configuration changes. Additionally, the company is aligning supply with customer demand through targeted pricing adjustments and close collaboration with partners. While these strategies demonstrate HP's proactive approach to managing costs, they also underscore broader industry challenges. The tech sector is closely watching how companies adapt to fluctuating memory prices, which could influence PC market dynamics and consumer access to products. This situation highlights the critical role of supply chain resilience in the tech industry. For consumers, it may mean facing higher prices or potential delays in accessing new PCs as manufacturers navigate these cost increases. The broader implications for the tech sector emphasize the importance of agile strategies to manage fluct

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Originally published on Slashdot on 2/25/2026