The bad news continues - server prices set to rise in latest blow to hardware budgets

Date:
Sat, 06 Dec 2025 22:30:00 +0000

Description:
Rising memory costs driven by AI demand are forcing server and PC manufacturers to increase prices and adjust production priorities.

FULL STORY ======================================================================AI-focus ed memory production is limiting availability for consumer hardware DRAM
costs are climbing faster than most manufacturers anticipated Dell and Lenovo announce double-digit price increases for enterprise servers

Server and PC manufacturers are facing a sharp rise in component costs, largely driven by memory shortages.

Analysts warn that DRAM and HBM production is increasingly focused on AI servers, reducing availability for standard consumer hardware.

TrendForce estimates that DRAM prices could climb between 8 and 13%, while Counterpoint predicts an even steeper increase. Industry responses and price adjustments

This shift in production priorities has prompted companies to reconsider product lines, with some brands halting consumer focused memory to meet enterprise demand.

Major OEMs, including Dell, Lenovo, HP, and HPE, are planning large price hikes for servers, projected at around 15%, while PC prices are expected to rise roughly 5%.

Dells COO described the shortages as "unprecedented," noting that supply is struggling to keep pace with growing demand.

Memory components, NAND, hard drives, and advanced semiconductor nodes are
all under pressure.

Channel sources suggest that elongated lead times are now common across brands, with the exception of Apple Macs and Microsoft Surface products,
which appear less affected.

Memory makers are increasingly pivoting toward AI focused production, affecting the availability and cost of components for general hardware.

Micron recently announced the discontinuation of its Crucial brand , aiming
to prioritize large clients with AI servers.

Samsung reportedly increased memory prices by up to 60% as fabs shift
capacity toward AI workloads.

This surge in demand has created volatility across the memory market, leaving manufacturers scrambling to adjust pricing and supply strategies.

Supply chain sources indicate that nearly all major manufacturers plan double digit increases in server prices and moderate hikes in PCs.

Lenovos COO warned that cost pressures on memory and SSDs are "more dramatic than usual," making mitigation difficult.

HP described higher memory costs as a "temporary headwind" that primarily affects PCs rather than peripheral devices.

Despite these adjustments, IDC analysts note that the current market movement is unusually large compared to past fluctuations.

The trend reveals the growing influence of AI on hardware markets, with
demand for servers, CPUs , and GPUs driving memory scarcity.

While manufacturers work to manage the impact, the pace of these price shifts suggests that budgets for enterprise and consumer hardware will face
sustained pressure.

Via The Register

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