Next year, HP will likely launch PCs with more limited memory configurations and increase prices, in response to the significantly increased prices of DDR5 RAM.
Following DDR4 RAM, the price of DDR5 memory is now also rising. In recent weeks, the cost of DDR5 RAM, which powers laptops, desktops, and servers, has increased by approximately 100 to even 200 percent, and this has significant implications. Starting this spring, this situation will be felt in both the price and the available configurations of laptops.
Limited Stock
HP’s CEO Enrique Lores is transparent about the impact. In an earnings call, he stated that while HP has built up inventory, he expects it to be depleted by spring. From that point, HP will need to take action. The manufacturer will seek more supply but will also be forced to introduce configurations with less memory to maintain a certain price point. Devices with more memory will inevitably become more expensive.
This will impact demand, he predicts. The entry-level segment, in particular, is sensitive to these changes. Those willing to spend thousands of euros on a powerful workstation will likely be able to bite the bullet.
Industry-Wide Impact
HP is not alone. In recent discussions with other manufacturers, ITdaily heard similar sentiments. Manufacturers operate with inventories, but these are relatively limited. In the event of component shortages or price increases, an impact on the end customer’s price will follow sooner or later.
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AI Makes DDR4 more Expensive than DDR5
AI is the main culprit. Demand for memory is currently much higher than supply, because AI applications are memory-intensive. Manufacturers cannot simply scale up production, as a new RAM production line costs billions and takes more than a year to build.
Consequently, memory manufacturers like Micron and Samsung are focusing on lucrative production. HBM memory for AI applications is more profitable than traditional RAM. For this reason, DDR4 RAM production was largely phased out last year, so that old DDR4 memory actually turned out to be more expensive than DDR5. Now, current DDR5 memory is following the same path. In other words: your next laptop will become more expensive so that Meta can put thousands of Nvidia Blackwell GPUs with HBM memory into a data center to create new AI models.