Memory Costs Surge, Lenovo & Dell Plan 20% Hike

Recent reports indicate that the surge in artificial intelligence (AI) adoption is accelerating shortages and price spikes in memory chips and related components, impacting the electronics supply chain faster than expected. Analysts predict the situation could worsen through 2026, prompting major PC and server manufacturers—such as Lenovo, Dell, HP, and HPE—to plan price increases of up to 20%.

Lenovo has already started warning customers about escalating DRAM shortages, which are accelerating at an unprecedented pace. Current server and PC pricing is set to expire on January 1, 2026, after which new quotes are expected to reflect significant increases.

Dell is reportedly considering a 15–20% price increase for PCs and servers as early as mid-December 2025. In late November, Dell COO Jeff Clarke highlighted the unprecedented rise in memory costs, noting that spending across product lines is climbing rapidly. The price pressure is not limited to DRAM; NAND flash, hard drives, and chip node production processes are all affected.

Market tracker TrendForce initially projected 2026 laptop shipments to grow 1.7% year-over-year, but recent updates have revised the forecast to a 2.6% decline. The adjustment reflects how AI-driven memory shortages are disrupting production lines across the industry.

Memory manufacturers are prioritizing high-end DRAM and HBM technologies to meet AI server demands. In the fourth quarter of this year, market prices for DRAM products surged 40–50% on average, with contract prices climbing over 20%.

In a strategic shift, Micron recently retired its nearly 30-year-old consumer brand, Crucial, to focus on higher-margin data center clients. PC makers are feeling growing pressure on profit margins, with key DRAM components—including DDR5—seeing year-over-year cost increases of 70%, and some parts soaring as high as 170%. Companies like Lenovo, HP, Dell, Samsung, and LG are re-evaluating their 2026 product plans for PCs and tablets in response.

HP CEO Enrique Lores noted that prices may need further adjustment in the second half of 2026, highlighting that memory accounts for 15–18% of a PC’s total cost. Lenovo's COO, Marco Andresen, warned, “The industry is experiencing unprecedented cost growth, particularly in DRAM and SSDs. The increases are more significant than ever, and no company can fully absorb them.”

Lenovo is advising customers to place orders quickly to avoid the next anticipated price hike. The company emphasized that global supply pressures are constraining DRAM production, while major tech companies with deep pockets competing for AI-related demand will further intensify market pressure, ultimately affecting end users the most.