Post ContentLike RAM and storage, AI data centers are also buying CPUs to handle increasing workloads. (Image Source: Pixabay)
AI has already caused a global memory and storage crisis, and now it looks like the shortage may cause laptop prices to increase by almost 40 per cent. According to TrendForce, the notebook industry, which is facing pressure from both weak demand and rising component prices, is now also seeing a huge CPU price hike.
The firm goes on to say that Intel has already raised prices for select entry-level and last-generation notebook CPUs by more than 15 per cent, and is already planning to make its mid-to-high-end CPUs more costly in the second quarter of 2026.
The supply chain constraints are also said to hit small notebook vendors. The report says tier-one brands will benefit from their long-term partnerships with AMD and Intel as they purchase large volumes, while smaller brands will have to buy at increased prices and face limited availability.
The trend has already started affecting entry-level CPUs. One of the main reasons behind this might be the increased demand for high-performance computing products, with both AMD and Intel reducing supply for entry-level processors used in budget laptops.
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The analysis firm estimates that in order to preserve the existing margins for notebooks, brands may soon be forced to increase the retail price by almost 40 per cent. TrendForce also says the CPU market’s supply stability is starting to fluctuate as demand for AI-related workloads increases.
A year ago, DRAM and SSD accounted for just 15 per cent of a notebook’s Bill of Materials (BOM) cost. But now, analysts say that the projected cost of only these two components is expected to exceed 30 per cent in the coming weeks.
If you add the increased CPU prices, which are the main contributors to a notebook’s cost, the combined share of BOM costs will be somewhere between 45 to 58 per cent. This means a notebook that was previously priced at $900 (approx. Rs 83,000) may be priced at $1,270 (approx Rs 1,07,500).
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Last week, a Gartner report had predicted that budget PCs will disappear by 2028, with AI causing a 130 per cent hike in combined DRAM and SSD prices by the end of the year.
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