Research firm says sub-$500 PCs will vanish by 2028 as memory prices spike
Mar 2nd 2026
Gartner warns a global memory shortage and sharp DRAM and SSD price increases will push up device costs, cut shipments and likely eliminate sub-$500 PCs within two years, prompting longer upgrade cycles and new security risks.
- Gartner predicts the sub-$500 entry-level PC segment will disappear by 2028.
- DRAM and SSD prices could surge about 130% by the end of 2026, driving PC prices up 17% and smartphone prices up 13% versus 2025.
- Worldwide PC shipments are forecast to fall 10.4% in 2026, and smartphone shipments by 8.4%.
- Memory costs are expected to account for 23 percent of a new PC's bill of materials in 2026, up from 16 percent last year.
- Consumers and businesses are expected to extend PC lifetimes by 20 percent and 15 percent respectively by the end of 2026, raising security and device management concerns.
- Shortages are already affecting products like the Steam Deck and have prompted warnings from companies including Sony, Apple and Tesla about constrained production and possible delays.