Entry-Level PC Segment Might Disappear by 2028, Claims Gartner

Rising memory and storage costs are pricing entry-level PC buyers out of the market, which may disappear entirely. According to the analyst firm Gartner, the sub-$500 PC sector might vanish by 2028. Their analysis indicates that memory, which used to be just a small part of the total bill of materials (BOM) at 16% of the total PC cost in 2025, is expected to rise to nearly a quarter of the PC’s cost at 23%, making the entry-level PC segment unsustainable. “This sharp increase removes vendors’ ability to absorb costs, making low-margin entry-level laptops nonviable. Ultimately, we expect the sub-$500 entry-level PC segment will disappear by 2028,” said Ranjit Atwal, Senior Director Analyst at Gartner. He added, “In addition, rising AI PC prices will delay the projected 50% market penetration of AI PCs until 2028.”

We have witnessed multiple price increases across many PC components such as DRAM, NAND Flash, and GPUs. With manufacturers unable to produce PCs at any tangible profit levels in the sub-$500 PC sector, it might entirely disappear from the mainstream PC market. The concept of budget builds might become obsolete, with the majority of PCs ending up in categories above that threshold, near or beyond four figures. Gartner estimates that there will be about a 130% increase in combined DRAM and NAND Flash pricing by the end of this year, increasing PC prices by about 17% compared to 2025 levels. This situation will push consumer and enterprise demand toward premium PCs.

Finally, the firm estimates that total PC shipments will drop 10.4% in 2026 compared to 2025 levels, which is a culmination of rising memory and storage prices paired with scarcity. It also means that the number of total units sold might be lower, but the total revenue from the OEMs might hold near the same level or actually be higher as the average selling prices have been rising accordingly. We need to see what the year will bring, but the indications so far are not in the best shape.