The rise of artificial intelligence is creating major effects in the hardware market, with prices increasing across many components. There is bad news for processors and hard drives, but especially for RAM memory, whose cost has risen sharply.
Now, another worrying update comes from HP. The computer manufacturer says that the cost of producing its hardware has increased by up to 35%. This rise is mainly linked to higher memory prices, but also to the cost of storage devices.
HP’s Strategy to Deal With Rising RAM Costs
To deal with this situation, HP says it is taking action. The company is making sure it secures enough memory supply through long-term agreements and by working with new suppliers that can meet its needs.
For now, the RAM crisis does not seem to be hurting HP’s overall results. The company reports an 11% growth compared to last year.
HP also points out an interesting situation. Demand for its AI-based PCs has grown quickly, rising from 25% to 35% in a short time. This is somewhat ironic, as these AI PCs require even more RAM than standard models.
“The demand will continue,” the company says, highlighting how important AI PCs are for its future business.
At the moment, the situation does not seem critical for HP. However, supply contracts do not last forever, and everything will depend on how long this RAM crisis continues.
