2026 Crisis Worsens, Business Owners Complain About RAM Prices
Jakarta, CNBC Indonesia - The component cost crisis in 2026 is becoming increasingly apparent in the technology industry. HP Inc. reported that the price of memory chips, or RAM, now accounts for 35% of the total material cost for assembling PCs, a significant increase from the 15-18% range in the previous quarter. The company even expects the pressure to continue until the end of the year.
In its Q1 2026 earnings presentation, interim CEO Bruce Broussard stated that the company has secured long-term supply contracts, added new suppliers, and built strategic stockpiles to anticipate price increases. He also said that the time required to qualify new materials has been halved to accelerate product configuration changes.
In addition to securing supply, the company is improving efficiency through the diversification of low-cost commodity sources and reducing logistics costs with internal AI-based planning processes.
Broussard also mentioned the recent US Supreme Court decision overturning the Trump administration’s tariffs.
“Currently, we do not expect to be negatively impacted by further developments following the court’s decision,” he said, as quoted by The Register on Thursday (February 26, 2026).
On the commercial side, HP has begun to make selective price adjustments to offset rising costs, working with distributors and direct customers.
Despite the cost pressures, sales performance still recorded growth. The personal systems division recorded revenue of US$10.3 billion, up 11% year-on-year. Consumer sales jumped 16% with a 14% increase in volume, while the business segment recorded a 9% increase in revenue.
Management said that the adoption of Windows 11 and the increasing interest in AI PCs are the main drivers. Currently, 35% of the PCs sold by HP are AI PCs, with support from more than 100 software developers to expand its application ecosystem.
In total, Q1 revenue reached US$14.4 billion, up nearly 7% compared to last year. However, management warned that the full-year outlook is likely to be at the lower end of guidance due to rising memory prices and volatile business conditions.
Meanwhile, after opening at US$18.33, HP shares fell six percent in after-hours trading to US$17.15, reflecting investor concerns about margin pressure amid the deepening component crisis in 2026.
(fab/fab)