According to the latest report released by Gartner,Affected by the severe shortage of DRAM supply, the entry-level PC market under $500 will completely disappear by 2028. PC shipments are expected to plummet by 10.4% in 2026, a decline greater than that of the smartphone market.
Gartner senior analyst Ranjit Atwal pointed out that the proportion of memory costs in PCBOM material costs has increased sharply, and manufacturers can no longer absorb the cost increases as they did in the past.
For traditional entry-level products, manufacturers usually choose to absorb BOM growth internally to maintain price competitiveness. However, the current increase in memory prices has exceeded the endurance limit. "Manufacturers have no choice but to pass on cost pressures to consumers."
Ranjit Atwal made it clear: “The sub-$500 entry-level PC market will disappear by 2028”.
This shift has the most severe impact on the mainstream price segment of US$500-1,000. Gartner predicts that consumers will significantly extend their replacement cycles and PC service life will increase by 20% before the end of this year.
In order to ensure profitability, manufacturers would rather accept a decline in sales and give priority to ensuring the supply of high-end, high-profit models, which means that there will be less and less stock in the low-price segment.
As existing DRAM stocks are rapidly depleted, memory price inflation will further intensify in the second quarter. For players with limited budgets, the only feasible response strategy is to postpone purchase plans, but this process may take more than a year.
