According to the latest report by Gartner (a global technology research and consulting company based in the United States), the personal computer (PC) segment priced under 500 USD may disappear by 2028, as memory and storage prices escalate due to the explosive demand from artificial intelligence (AI) data centers.
In recent months, the massive expansion of global AI infrastructure has put great pressure on the DRAM and SSD supply chains.
The prices of these components are recorded to have increased two, three, even four times in less than half a year. According to Gartner, the total price increase of DRAM and SSD may reach 130% by the end of this year.
As a result, the consumer device market is directly affected. Gartner forecasts that global PC shipments will decrease by 10.4% this year, while smartphones will decrease by 8.4% compared to 2025 levels. This is considered the strongest decline in the PC market in more than a decade.
Increased component prices have also pushed up retail prices of devices. Gartner estimates that PC prices may increase by an average of 17%, while smartphones will increase by about 13%. As memory costs are expected to account for 23% of the total component costs (BOM) of a PC, the space to maintain cheap models is shrinking.
Mr. Ranjit Atwal, Senior Analyst at Gartner, said that the PC segment under 500 USD will no longer exist in 2028.
At the same time, the price of AI-integrated computers higher than expected may also slow down the process of reaching the 50% penetration mark of PC AI in the market, at least until 2028.
Not only consumers are affected, businesses are also under great pressure. Increased costs force organizations to extend the life cycle of equipment.
Gartner forecasts that PC lifespans will increase by 15% in the corporate customer group and 20% in the individual user group. However, delaying upgrades may lead to higher security risks and make it difficult to manage older systems.
Currently, many PC models without integrated graphics cards are still priced below 500 USD. However, if the upward trend in memory and hard drive prices continues, this segment may narrow down quickly or disappear completely in the next few years.
A similar trend may also spread to the cheap smartphone market, especially the group of devices under 9,000 Rupees (97 - 98 USD) in some developing markets.
As component costs account for an increasing proportion, manufacturers are forced to restructure their product portfolios, prioritizing the high-end segment or integrating AI to ensure profit margins.
If Gartner's forecast becomes reality, the period 2026 - 2028 may mark a turning point in the technology market as consumers keep devices longer, while the concept of cheap computers gradually recedes into the past.
