Memory Chips Now Account For Nearly 50% Of Device Cost: Asus India VP

Memory prices have surged, and memory chips have become a far larger component of the cost of laptops, personal computers and tablets, with memory now accounting for nearly 50% of total device cost, according to Arnold Su, vice-president for the consumer and gaming PC segment at Asus India. Two years ago, memory accounted for only around 10–15% of device costs, highlighting the scale of the price shock facing the global electronics industry.

The sharp increase in memory costs is already forcing manufacturers to raise device prices. Asus expects another 5–10% price increase during the October-December quarter, following price hikes implemented in the July-September period. Su said the outlook for 2027 remains uncertain, but the company does not currently expect memory prices to decline significantly. At the same time, Asus has maintained growth in India and reached its highest-ever market share of around 23.5%, despite broader weakness in the PC market.

Memory Chips Now Account For Nearly Half Of Device Cost

The dramatic rise in memory prices is changing the economics of consumer electronics.

According to Asus India, memory chips represented approximately 10–15% of a device’s total cost two years ago. That share has now increased to nearly 50%, making memory one of the most important cost components in laptops, PCs and tablets.

The change means manufacturers have considerably less room to absorb higher component costs without passing at least some of them on to consumers.

Memory Cost Impact

Metric	Earlier	Current
Memory share of device cost	~10–15%	~50%
Period	~2 years ago	2026
Expected Q4 price increase	—	5–10%
Q3 price increases	—	Already implemented
2027 price outlook	—	No clear decline expected

The scale of the increase also explains why manufacturers are revisiting product configurations and pricing strategies.

Asus Expects Another 5–10% Price Increase

Asus does not expect the current increase in memory costs to be the end of the pricing cycle.

Arnold Su said companies have already raised prices during the July-September quarter, and another 5–10% increase is expected in the October-December quarter.

The company is also not counting on memory prices returning to earlier levels in 2027.

Higher Memory Costs
        ↓
Q3 Price Increases
        ↓
Further Cost Pressure
        ↓
Q4 2026
5–10% Additional Hike
        ↓
2027 Outlook
Prices Still Uncertain

This could make laptops, PCs and tablets more expensive for consumers over the coming quarters.

Why Memory Prices Matter So Much

Device makers are already absorbing the hit further up the chain — Xiaomi’s H1 2026 profit fell 37.6% as memory chip costs bit into margins.

Memory is a fundamental component in almost every modern computing device.

Laptop and desktop computers use RAM for short-term data processing, while storage devices such as SSDs use NAND flash memory.

Higher memory prices therefore affect a wide range of products rather than a single category.

Devices Exposed To Memory Costs

Product Category	Memory Used
Laptops	DRAM + NAND
Desktop PCs	DRAM + NAND
Tablets	DRAM + NAND
Smartphones	DRAM + NAND
Gaming PCs	High-capacity DRAM + NAND
Servers	Large quantities of DRAM + storage
AI infrastructure	High-performance memory

The rapid expansion of AI infrastructure is particularly relevant because AI servers require substantial quantities of high-performance memory and storage.

AI Boom Is Changing Memory Demand

Supply is tightening at the premium end too, with the MacBook Air facing delays amid a worldwide memory chip crunch.

The broader semiconductor industry is experiencing a major shift in demand because of artificial intelligence.

AI data centers require enormous computing capacity, and that translates into higher demand for advanced processors as well as high-bandwidth and other forms of memory.

Although Su’s comments specifically address the cost of memory in consumer devices, the wider semiconductor market is being influenced by AI infrastructure investment.

This creates competition for semiconductor manufacturing capacity between consumer electronics and data-center applications.

Semiconductor Demand Shift

Traditional Demand
PCs + Smartphones + Tablets
             ↓
      Semiconductor Demand

AI Infrastructure Boom
             ↓
Servers + Accelerators
             ↓
Higher Advanced-Memory Demand
             ↓
Tighter Supply
             ↓
Higher Memory Costs
             ↓
Consumer Device Prices

The result is that consumers can ultimately feel the effects of investment taking place far beyond the PC market.

Asus Brings Back 8GB RAM Variants

Manufacturers are also changing their product portfolios to respond to the higher cost of memory.

Su said companies that had previously removed 8GB RAM variants have brought those configurations back, with different customizations being offered to customers.

This represents a practical way for manufacturers to maintain lower entry prices.

How PC Brands Are Responding

Strategy	Purpose
Bring back 8GB models	Maintain lower entry prices
Product customization	Offer different configurations
Price increases	Offset higher component costs
Portfolio changes	Protect margins
Premium positioning	Improve value realization

The return of lower-memory configurations suggests that companies are trying to balance performance expectations with affordability.

Consumers Could See More Expensive Laptops

The immediate consequence of higher memory costs is likely to be higher retail prices.

If manufacturers pass on the expected 5–10% increase in the fourth quarter, consumers purchasing laptops and PCs during the festive season could face higher prices than they would have earlier in the year.

The impact will vary by product category.

Potential Consumer Impact

Device	Likely Impact
Entry-level laptops	Higher prices or lower configurations
Mid-range laptops	Higher selling prices
Gaming laptops	Higher component costs
Premium PCs	Greater absolute price impact
Tablets	Higher memory-related costs
Smartphones	Potential component-cost pressure

Brands may not necessarily increase the sticker price by the full amount of the memory-cost increase. They can instead adjust specifications, promotions, margins or other components.

Asus Maintains 23.5% Market Share In India

Despite the memory-cost environment, Asus has continued to gain ground in India.

The company currently has approximately 23.5% market share, which Su described as its highest-ever level.

This is notable because Asus says most major players in India’s PC market experienced declines in sales and market share in 2026 as memory costs increased.

Asus, by contrast, continued to grow while maintaining its market position.

Asus India Market Position

Metric	Asus
Current market share	~23.5%
Status	Highest-ever share, according to company
2026 trend	Growth
Market environment	Rising memory costs
Major challenge	Component inflation

The company is therefore entering the next pricing cycle from a relatively strong competitive position.

Why Asus Is Gaining Ground

Asus has historically had a strong presence in gaming laptops, premium PCs and consumer notebooks.

Its broad product portfolio allows it to target multiple price segments.

The company is also expanding its physical retail and service network to reach consumers beyond India’s largest cities.

This distribution strategy could become increasingly important as consumers become more price-sensitive.

Asus Targets 2,000 Talukas In 2026

The company is pursuing a significant expansion of its physical presence across India.

As of July, Asus had a presence in nearly 700 of India’s 788 districts, with at least one retail dealer selling its products in those locations.

The company aims to expand into at least 2,000 talukas during 2026 and expects to cross 3,000 talukas by 2027.

Asus Distribution Expansion

Milestone	Target
Districts with presence as of July	~700
Total Indian districts	788
Taluka target for 2026	2,000+
Taluka target for 2027	3,000+

The expansion is intended to make Asus products and after-sales services accessible in smaller cities and towns.

After-Sales Service Is Part Of The Strategy

Asus is also using its accessories business to strengthen customer relationships.

The company is offering at-home service or replacement for smaller products such as mice and keyboards, according to Su.

The strategy is intended to reassure consumers that the company can provide service even outside major cities.

More Retail Dealers
        +
Wider Service Network
        +
At-Home Support
        ↓
Greater Customer Reach
        ↓
Higher Brand Confidence
        ↓
Potential PC Sales Growth

For a market where after-sales service can influence purchasing decisions, especially outside major metropolitan areas, the approach could help Asus compete against larger electronics brands.

The PC Market Faces A Difficult Cost Environment

The memory-cost shock comes at a challenging time for the broader PC industry.

Manufacturers are dealing with higher component costs while consumers remain sensitive to pricing.

This creates a difficult balance:

• Raise prices and risk lower demand
• Keep prices stable and absorb lower margins
• Reduce specifications to maintain affordability
• Increase promotions to preserve volumes
• Shift consumers toward higher-margin products

Different manufacturers are likely to adopt different combinations of these strategies.

8GB RAM Could Become The New Entry-Level Standard Again

The return of 8GB RAM models is particularly notable because the industry had been gradually moving consumers toward higher-memory configurations.

As applications become more demanding, 16GB has increasingly become a preferred configuration for many mainstream laptops.

However, higher memory costs could reverse part of that trend.

Potential RAM Configuration Shift

Earlier Trend
8GB → 16GB → Higher RAM
        ↓
Memory Prices Rise Sharply
        ↓
8GB Models Return
        ↓
Lower Entry Price
        ↓
Consumers Trade Off Performance
For Affordability

The development could be especially relevant in the budget and mid-range laptop segments.

Gaming PCs Face A Different Challenge

Gaming laptops and high-performance PCs typically require larger memory configurations.

Gamers and power users may therefore face a greater absolute increase in component costs.

At the same time, premium consumers may be less sensitive to percentage price increases than entry-level buyers.

This could encourage manufacturers to prioritize premium products while maintaining stripped-down configurations for price-sensitive consumers.

India’s Festive Season Could Test Demand

The October-December quarter is traditionally important for consumer electronics sales in India because of the festive season.

A further 5–10% price increase during this period could create a difficult environment for manufacturers.

Consumers may accelerate purchases before prices rise further, creating short-term demand.

Alternatively, higher prices could encourage buyers to postpone upgrades or choose cheaper specifications.

Festive-Season Scenarios

Scenario	Possible Consumer Response
Prices rise 5–10%	Early purchases
Discounts increase	Demand supported
Entry-level models return	Budget demand protected
No major discounts	Upgrade postponement
Memory prices remain high	Longer replacement cycles

The final outcome will depend on the interaction between prices, discounts, income growth and consumer demand.

Memory Inflation Could Change Product Design

If memory remains structurally expensive, manufacturers may rethink how they design and price devices.

Rather than simply passing every component increase to consumers, companies can optimize other parts of the bill of materials.

Possible strategies include:

• Lower base RAM
• Smaller SSDs
• More upgradeable configurations
• Different processors
• More aggressive product segmentation
• Premium configurations with higher margins

This could lead to a wider gap between entry-level and premium devices.

Supply Conditions Will Remain Critical

The duration of the current price increase will ultimately depend on semiconductor supply and demand.

If memory manufacturers increase production sufficiently, prices could stabilize.

But if AI infrastructure continues absorbing a large share of semiconductor investment, consumer electronics manufacturers could face continued pressure.

This explains why Asus does not currently expect a clear decline in prices in 2027.

What It Means For India’s PC Industry

The memory-cost increase could accelerate consolidation within India’s PC market.

Large brands with stronger supply-chain relationships and greater purchasing power may be better positioned to absorb temporary cost shocks.

Smaller brands may have fewer options and could be forced to raise prices more aggressively.

Competitive Impact

Company Type	Potential Impact
Large global brands	Better purchasing power
Large Indian brands	Stronger local distribution
Smaller brands	Greater margin pressure
Premium brands	Greater ability to pass on costs
Budget brands	Higher demand sensitivity

Asus’s continued market-share gains suggest that brand strength and distribution can matter significantly during periods of component inflation.

Memory Costs Could Affect More Than PCs

Although Asus’s comments focus on laptops, PCs and tablets, the underlying memory-price issue has implications for other consumer electronics.

Smartphones, gaming consoles, servers and connected devices also use memory.

If the higher cost environment persists, manufacturers across these categories could face similar decisions over pricing and specifications.

Broader Electronics Impact

Memory Price Inflation
        ↓
 ┌──────┼───────┬───────┐
 ↓      ↓       ↓       ↓
PCs   Phones  Tablets  Servers
 ↓      ↓       ↓       ↓
Higher Component Costs
        ↓
Pricing / Specification Changes

The effect will vary depending on how much memory contributes to each product’s bill of materials.

The Bigger Picture

Asus India’s warning that memory chips now account for nearly 50% of total device cost highlights the severity of the current semiconductor cost pressure. Two years ago, memory represented only around 10–15% of device costs, according to the company. Asus expects another 5–10% increase in device prices during the October-December quarter after price increases in the July-September period, while the outlook for 2027 remains uncertain.

The pressure is forcing manufacturers to rethink product configurations as well as pricing. Some companies that had removed 8GB RAM models have brought them back to preserve lower-priced offerings. At the same time, Asus is trying to protect its growth through wider distribution, with a presence in nearly 700 of India’s 788 districts and plans to reach more than 2,000 talukas in 2026 and 3,000 by 2027.

Looking Ahead

The next few quarters will determine whether the memory-cost surge becomes a temporary semiconductor-cycle issue or a longer-lasting structural challenge for consumer electronics. For Indian consumers, the immediate risk is that laptops, PCs and tablets become more expensive at a time when manufacturers are already preparing for another 5–10% price increase in the fourth quarter. Budget buyers could increasingly see lower-memory configurations returning as brands attempt to keep entry prices under control.

For Asus, the company enters this environment with its highest-ever reported Indian market share of around 23.5%. Its ability to combine pricing discipline with a broader retail and service network could help it defend that position. But if memory costs remain elevated through 2027, the entire PC industry may need to adapt through higher prices, leaner specifications and more aggressive product segmentation rather than waiting for a rapid return to earlier component-cost levels

Frequently Asked Questions

How much of a laptop’s cost is memory in 2026?

According to Asus India VP Arnold Su, memory now accounts for nearly 50% of total device cost, up from roughly 10–15% about two years ago.

Will laptop prices rise further because of memory prices?

Asus expects another 5–10% price increase in the October–December quarter, following hikes already implemented in the July–September period. The 2027 outlook remains uncertain.

Why are memory chips getting more expensive?

AI infrastructure is absorbing large volumes of DRAM and NAND, tightening supply for consumer devices. Supply chains are also under political pressure — the US government has opposed Apple using Chinese memory chips.