Laptop prices could rise by up to 20% according to Lenovo Group, which reported a 21% drop in profits for the December quarter due to an unprecedented surge in component costs. CEO Yang Yuanqing stated that the industry is facing a massive doubling in the price of DRAM (memory) as factories shift production to serve neural networks, creating a long-term structural shortage of PC chips.
Financial Results and Price Shocks
Lenovo’s net profit fell sharply in the most recent quarter despite stable demand for hardware. The primary negative factor was the explosive growth in component costs, which the company’s head described as “persistent and unprecedented.”
In the current quarter, the cost of DRAM modules increased by 100%, following a 40-50% jump in the previous period. Lenovo management expects the shortage and high prices to continue pressuring the market throughout 2026.
Market analysts from IDC and TrendForce anticipate that price increases for consumer PCs and laptops will range from 15% to 20%.
Survival Strategy: AI PCs
To compensate for these losses, Lenovo is betting on the premium segment—devices with built-in AI (AI PCs). The company believes that the structural shift toward AI-capable computers will serve as a growth driver, allowing business margins to recover by 2027.
Laptop Prices: The AI Factor Behind Rising Memory Costs
NEWSROOM IN notes that the “price rally” is linked to the global arms race in artificial intelligence. Major chipmakers such as Samsung, SK Hynix, and Micron are diverting their production capacities to manufacture specialized HBM memory for NVIDIA AI servers and data centers.
As a result, the production of standard memory for laptops and PCs has fallen into a deficit. The situation is further complicated by the transition to the new DDR5 standard, as current production volumes are not yet sufficient to meet global demand.
