Major PC manufacturers are preparing to adjust their pricing for the next quarter, with memory chips emerging as the most significant cost driver. As DRAM and NAND prices continue to rise, the profitability of the entire PC industry is under pressure. HP and Dell, ranked second and third in global PC market share, have warned of a looming memory chip shortage by 2026, making price increases inevitable.

Dell's COO Clarke stated that while the company will optimize product configurations to mitigate challenges, the rising costs will ultimately be passed on to customers, with potential repricing for some products. "We’ve never seen costs rise at this pace," he remarked during an analyst call. HP CEO Enrique Lores anticipates the second half of 2026 to be the most supply-constrained period, with the company ready to raise prices if necessary. He noted that memory costs now account for 15%–18% of a typical PC’s total cost.

Lenovo Group (00992), the global market leader in PC shipments, is evaluating price adjustments for select products at an "appropriate time" to counter mounting cost pressures. While no official announcement has been made, industry insiders confirm that price hikes are imminent, though specifics remain undecided.

Over the past six months, memory chip prices have shifted from short-term volatility to a sustained upward trend. Demand from AI servers and data centers has absorbed much of the high-value memory capacity, including HBM, squeezing production for traditional PC components like DRAM and NAND. Some products have seen prices surge over 100% year-on-year, with tight supply prompting multiple increases.

For PC makers, memory components represent a critical, non-linear cost factor. If DRAM or NAND prices spike sharply in a single quarter, manufacturers’ gross margins take a hit. Lenovo, with over 25% global market share, has historically relied on bulk purchasing, supply chain optimization, and inventory strategies to smooth cost fluctuations. However, the current surge has made such measures increasingly costly.

Sources close to Lenovo’s channel operations suggest the company may implement differentiated price hikes across regions and product lines, timing adjustments to market conditions. Financially, the rationale for price increases is clear: memory cost inflation is already impacting quarterly gross margins. Without price adjustments, PC makers’ profitability could face significant pressure over the next two quarters.

Analysts note that Lenovo, positioned at the top of the pricing hierarchy, views hikes not as a risk but as a tool to safeguard margins. Earlier reports indicated Lenovo has stockpiled memory and key components to address AI-driven shortages. CFO Winston Cheng revealed on November 24 that the company’s inventory levels are about 50% higher than usual.

Pricing pressures vary by vendor, depending on customer structure. Unlike retail-focused brands, Lenovo derives over half its shipments from commercial and enterprise clients—large corporations, financial institutions, and government buyers—who prioritize lifecycle costs, security, and service over short-term price fluctuations. This gives Lenovo greater pricing flexibility and stronger bargaining power.

IDC data shows Lenovo’s commercial PC shipments grew 15.5% YoY in Q1–Q3 2025, outpacing consumer growth (13%), further diluting fixed costs. Morgan Stanley’s November 17 report identified Dell and HP as the most vulnerable to memory price hikes, projecting a 2–4 percentage-point drop in their 2026 PC gross margins. Apple, meanwhile, leverages its supply chain clout to negotiate better terms.

Retail channel data shows minor price adjustments in some regions, signaling that manufacturers can no longer absorb rising memory costs. With upstream capacity expansion unlikely and AI demand persisting, DRAM and NAND prices may keep climbing into next year, forcing leading PC makers to clarify pricing strategies soon.

This price cycle could reshape market dynamics. Retail-focused brands face tough choices between margins and demand, while vendors with deep supply chain ties—like Lenovo—gain defensive advantages through cost-locked inventories. Historically, memory price surges consolidate market share among scale players, as smaller brands cut configurations or delay launches.

The shift toward AI PCs is also altering procurement logic, with enterprises favoring performance and lifecycle value over low prices. Global players like Lenovo can stagger regional price hikes to stabilize profitability.

In summary, while memory price inflation pressures the industry, top-tier PC makers like Lenovo are well-positioned to turn challenges into opportunities, leveraging scale, supply chain depth, and commercial client loyalty to reinforce market leadership.