For most users, a $500 PC used to mean a machine capable of handling everyday tasks—web browsing, office work, light gaming—without breaking the bank. That balance is now under severe pressure.
Memory and storage costs, once a small fraction of a PC’s total bill of materials, are climbing rapidly. By 2025, memory alone accounted for 16% of a PC’s cost, but that figure is expected to jump to nearly 23% by the end of this year. Storage isn’t far behind, with NAND flash prices also surging. Together, these components are pushing the cost of entry-level systems higher, making it increasingly difficult for manufacturers to produce them at a profit.
Where the Numbers Tell the Story
Gartner’s analysis suggests that by 2028, the sub-$500 PC segment could vanish entirely. The firm cites a projected 130% increase in combined DRAM and NAND flash pricing by year’s end, which would raise PC prices by about 17% compared to 2025 levels. This isn’t just a matter of inflation—it’s a structural shift where memory and storage are becoming dominant cost factors, not just minor expenses.
For buyers, this means fewer options at the lower end of the market. The days of $400 laptops with basic specs might soon be behind us. Instead, users may find themselves choosing between mid-range systems that offer more performance or facing longer wait times for refurbished models to fill the gap.
Key Specs and Real-World Impact
- Memory: 16 GB of DRAM is becoming a standard baseline, but costs are rising sharply. By 2028, this could push entry-level systems into mid-tier pricing territory.
- Storage: 12GB NAND flash modules, once affordable in bulk, are now a significant portion of a PC’s total cost. This trend is likely to continue as demand from AI-driven data centers grows.
The impact isn’t just on price—it’s on availability. Smaller manufacturers and OEMs may struggle to secure components at viable costs, potentially forcing them out of the entry-level market or shifting their focus to higher-end products. This could leave gaps in the market that larger players like Dell or HP might not fill, leaving consumers with fewer choices.
For now, buyers who rely on budget builds will need to monitor pricing closely. Refurbished systems may become even more critical as new options dry up. The long-term outlook remains uncertain, but one thing is clear: the entry-level PC market as we know it is at a crossroads.
