RAM now represents 35 percent of bill of materials for HP PCs
Ars Technica
by
Scharon Harding
February 25, 2026
AI-Generated Deep Dive Summary
HP Inc.'s CFO Karen Parkhill revealed during the company's Q1 2026 earnings call that RAM now accounts for approximately 35% of HP PCs' bill of materials (BOM), up from roughly 15-18% in the previous quarter. This significant increase highlights the severity of the current global memory chip shortage, which has caused a substantial rise in RAM prices. Parkhill noted that memory costs have already increased by about 100% sequentially and are expected to continue climbing throughout the fiscal year.
The memory shortage is having a profound impact on HP's business, as higher component costs are leading to reduced customer demand for PCs. The company projected a double-digit decline in its total addressable market for Personal Systems this calendar year due to these price hikes. This situation reflects broader industry challenges, with supply and demand imbalances affecting the tech sector as a whole.
The sharp increase in RAM prices underscores the critical role memory chips play in modern computing. As the global PC market faces headwinds from declining sales and shifting consumer preferences, companies like HP are grappling with how to manage these rising costs while maintaining profitability. This situation also highlights the interconnected nature of the tech industry, where shortages in one component can ripple across multiple sectors, including PCs, data centers, and AI-driven applications.
For readers interested in tech, this story illustrates the far-reaching implications of supply chain disruptions on consumer technology. The RAM shortage not only affects PC manufacturers but also raises questions about how companies will innovate and compete in a high-cost environment. As memory prices continue to rise, it could lead to broader changes in product offerings, pricing strategies, and industry dynamics.
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Originally published on Ars Technica on 2/25/2026