Rising RAM, SSD prices drive 21% slump in global PC orders

Worldwide PC shipments fell sharply in the third quarter of 2026. The market covered desktops, notebooks, and workstations, and totaled 58 million units. This was a major reversal from the same quarter of 2025. The central issue was not simply weaker interest in computers. Rising memory costs made new devices more expensive to produce and buy.

DRAM and NAND flash prices surged as memory makers shifted production toward AI servers and data centres. RAM and SSDs, once about 15% of a PC’s manufacturing bill of materials, represented nearly 40%. Manufacturers raised prices, limited specifications, and reduced promotions. These measures still did not fully cover higher component expenses.

The result was weaker consumer demand and fewer shipments. Budget laptops were especially affected because their profit margins are very small. Omdia expects another decline in the fourth quarter, while industry experts warn that pressure could continue into 2027 if memory prices do not stabilize.

The global PC market shrank by 21% in the third quarter of 2026. Shipments reached 58 million units, compared with 73 million during the same quarter in 2025. That means the market lost 15 million shipments in one year. The size of this drop shows how strongly component costs affected buying decisions.

Memory was the key pressure point. RAM and SSDs rose from roughly 15% of a PC’s manufacturing bill of materials to nearly 40%. Manufacturers increased prices, but those hikes did not fully offset their expenses. Buyers therefore faced more costly machines, fewer promotions, or lower specifications, especially in budget models.

The decline may deepen. Omdia projects fourth-quarter shipments will fall 24% from the same period in 2025. Counterpoint Research estimates a possible 27% decline. Industry experts say the difficult conditions could last into 2027 unless memory prices stabilize.

DRAM is a type of semiconductor memory that temporarily holds data and instructions while a computer is running. It is the main technology used in RAM, which helps programs operate and lets the processor access active information quickly. NAND flash is non-volatile memory. It keeps stored data even when power is removed and is the main storage technology inside SSDs.

RAM supports immediate work, such as running applications and switching between tasks. An SSD stores the operating system, programs, and personal files. More RAM can support heavier multitasking, while a larger SSD provides more storage space. Both components are built into many modern PCs and contribute significantly to their manufacturing cost.

The article reports that RAM and SSDs grew from about 15% to nearly 40% of a PC’s bill of materials. The article does not define the technologies, but this established distinction explains why higher DRAM and NAND prices affect both computer performance choices and retail prices.

RAM and SSD prices rose because memory manufacturers shifted production capacity toward AI servers and data centres. These markets were described as more lucrative than consumer PCs. With less capacity serving PCs, supply became tighter while computer makers still needed DRAM and NAND flash. That imbalance drove prices upward.

The effect was unusually large. RAM and SSDs historically represented roughly 15% of a PC’s manufacturing bill of materials. Their share climbed to nearly 40%. PC makers raised prices, but the increases did not fully cover the higher component costs. Budget systems faced the most pressure because their margins were already razor-thin.

AI servers and data centres therefore competed directly with PCs for memory components. TrendForce expects DRAM prices to rise another 10–15% in the fourth quarter of 2026. NAND flash prices could increase 15–20%, keeping PC costs high and prolonging market weakness.

When memory becomes a much larger manufacturing cost, PC makers face a difficult choice. They can raise retail prices, accept lower profits, reduce specifications, or cut promotions. The article reports that manufacturers used all these pressures in different ways, but their price increases still failed to offset rising component expenses.

Entry-level laptops show the clearest effect. Many remained limited to 8GB of RAM and a 256GB SSD, while vendors reduced promotional incentives to keep shelf prices manageable. These basic configurations reflect the narrow margins in budget devices. Higher memory costs also made it harder for manufacturers to offer upgrades without adding more expense.

Consumers responded by delaying new purchases or device upgrades. Elevated retail prices weakened demand, especially in the budget segment. This contributed to the 21% shipment decline in the third quarter. Further memory price increases could bring more price rises, tighter specifications, and weaker PC sales into 2027.

Manufacturers and channel partners built inventories aggressively during the first half of 2026. They wanted to secure PC units before expected memory cost increases made new production more expensive. This strategy assumed that demand would remain strong enough to absorb the extra stock. It also aimed to protect supply during a period of rising component prices.

The key mechanism was a mismatch between supply and demand. Consumer demand cooled dramatically in the third quarter, while retail prices rose because RAM and SSD costs increased. Buyers postponed purchases and upgrades rather than accepting the higher prices. The units already produced therefore moved more slowly through the sales channel.

Distributors and manufacturers were left holding excess PCs. That oversupply added another burden to the market, alongside expensive memory and weaker purchasing power. Vendors had to manage stock while limiting promotions and specifications. The combined pressure helped drive the third-quarter shipment decline and threatens to weigh on future quarters.

Semiconductor memory follows a supply-and-demand cycle. When buyers need more DRAM or NAND than factories can provide, available supply tightens and prices rise. Manufacturers may then add capacity or shift production toward the strongest markets. If supply later exceeds demand, inventories build and prices can weaken. The cycle can change quickly because factories serve several markets.

The article describes a major shift toward AI servers and data centres. Memory makers redirected production because those markets were more lucrative. That left less capacity for consumer PCs, even though PC manufacturers still needed RAM and SSDs. PC memory costs consequently rose, and their share of manufacturing expenses climbed from roughly 15% to nearly 40%.

This capacity shift affects the whole PC market. Manufacturers raise prices, limit specifications, and reduce promotions. Consumers delay purchases, causing demand to weaken while earlier stockpiles create excess inventory. TrendForce expects further DRAM and NAND increases, showing how shortages can continue before capacity and demand rebalance.