Tech

Sub-$500 PCs could disappear by 2028 as memory prices surge 130%, Gartner warns

Rising DRAM and SSD costs are squeezing margins and reshaping the entry-level PC market.

Update: Mar 2nd, 2026 21:00 CET

The days of picking up a capable budget laptop or desktop for under $500 are numbered. According to a report from research and advisory firm Gartner, the “sub-$500 entry-level PC segment” is expected to disappear within the next two years completely. This shift isn’t just a minor market fluctuation; it is the result of a global crisis in component pricing that is changing how we buy and maintain our tech.

The primary driver behind this disappearance is a projected 130% surge in DRAM and SSD storage prices by the end of 2026. Because memory is becoming exponentially more expensive, it is taking up a much larger portion of a computer’s “bill-of-materials.” Gartner notes that memory costs, which accounted for roughly 16% of a PC’s build cost last year, will soon jump to 23%. For retailers and manufacturers, the razor-thin profit margins on budget hardware mean they can no longer absorb these costs. Simply put, selling an entry-level PC will soon result in a financial loss for the companies making them.

How the AI bubble is affecting the future of technology

The implementation of AI farms to meet a demand that does not yet exist has led to the industry going from being unable to obtain video cards or processors to more basic parts in less than five years. This phenomenon is already being felt across the gaming world. We are seeing a direct impact on popular hardware like the Steam Deck, which has faced frequent stock shortages. Valve has explicitly warned that these “memory and storage shortages” could become a regular occurrence. Even more concerning for console fans are reports that Sony is considering pushing the release of the PlayStation 6 as far back as 2028 or 2029 to avoid the production bottlenecks and high costs associated with current memory scarcity.