The Tech Industry Retreats from Affordable PCs to Mitigate Losses

As previously indicated, numerous companies are discontinuing both the manufacturing and sale of budget-friendly hardware, including affordable personal computers. This shift will gradually eliminate the option to purchase a desktop PC, Mini-PC, or laptop priced below the $500 or €500 threshold. Furthermore, this market segment is projected to experience a global decline of 28% by 2026, while devices priced above $900 or €999 are expected to maintain, or even show modest growth. Consequently, this higher price point will become the new average.

However, a move towards more expensive hardware will not necessarily guarantee a better product. Due to widespread price increases across all hardware components, consumers may find themselves paying a premium for what was once considered 'bad' and cheap, now merely overpriced and still substandard. For instance, a device that previously cost €500 might now retail for €900. This trend is particularly evident in the laptop market, where it's increasingly common to find current models equipped with processors launched five years ago. Companies are struggling to find the optimal component mix to create marketable products.

Rising Costs of RAM, SSD, and CPUs Make Affordable PC Manufacturing Unprofitable

According to analyst firm TrendForce, if brands were to maintain their current profit margins, a mid-range laptop that once cost around €900 could now see its price increase by nearly 40%. This surge is primarily because RAM, SSDs, and CPUs now constitute a significantly larger portion of a system's manufacturing cost. The core issue is a bottleneck in memory and storage, exacerbated by the booming demand for AI in data centers. Additionally, CPUs have regained prominence amidst the AI frenzy. Consequently, manufacturers like AMD and Intel are prioritizing the production of server-grade chips over consumer-grade chips, which yield significantly lower profit margins.

TrendForce further notes that Intel already increased prices for certain entry-level and older-generation CPUs by over 15% in February. Another price hike followed in March, and Intel is set to raise CPU prices again in May. Intel has attributed its supply challenges partly to the robust demand for data center and server chips driven by the AI boom. This scenario means not only is less affordable memory available, but there's also increased pressure on processors that would typically be used in budget-friendly devices.

This situation disproportionately affects affordable computers, including those intended for students, office work, basic consumption, and by extension, much of the hardware purchased primarily based on price. Reuters had already forecasted in January 2026 that the impact would be most severe for manufacturers of low- and mid-range devices. It quoted Intel, stating that larger manufacturers could secure some additional memory, while smaller ones would face direct challenges in assembling their products. Omdia also highlights that Chromebooks and the educational sector are particularly vulnerable due to their low profitability and lower priority in component allocation. Therefore, while hardware will still be available, it will no longer come at an accessible price point.