Analysts project a severe contraction in global PC and smartphone shipments for 2026, with PC shipments forecast to fall 10.4%. This sharp decline is primarily driven by a massive surge in memory (DRAM and SSD) prices, which is drastically increasing device manufacturing costs.
The rising component costs are forcing significant PC price increases and making low-margin, entry-level devices nonviable. Consequently, the sub-$500 PC segment is expected to disappear by 2028, and consumers are extending the lifetimes of their existing devices.
The report is corroborated by real-world data, including HP's disclosure that memory now accounts for 35% of its PC bill of materials, up from 15-18% the prior quarter. Memory price tracking shows specific kits have more than doubled or tripled in cost since late 2025.
Main Topics: PC and smartphone market forecasts; memory (DRAM/NAND) price crisis; impact on device costs and consumer prices; disappearance of the budget PC segment.