Laptop prices could jump 40% as component costs continue aiming for the sky

A recent report by TrendForce has revealed a worrying future for laptop buyers. The consumer PC industry in general has faced tough times in recent quarters, thanks to reduced demand and higher-than-ever prices for crucial components.

RAM prices have skyrocketed in recent months, and storage prices have followed suit. This has forced many OEMs to increase prices, while many smaller players have had to resort to unfortunate product delays and cancellations. TrendForce states that the situation is unlikely to improve anytime soon, with Laptop prices expected to increase by as much as 40%.

To be precise, the firm clarifies that RAM and storage typically make up 15% of a laptop's total BOM (bill of materials). However, following several price hike cycles, RAM and storage will soon account for a whopping 30% of a laptop's BOM.

CPU prices are also expected to increase inc coming quarters, which happens to be one of the priciest component of a modern laptop, for obvious reasons. TrendForce states that Intel has already begun raising prices for some of its entry-level SKUs by around 15%. When combined with the aforementioned RAM and storage costs, these three components alone could soon represent 58% of a laptop's total BOM cost, up from 45%.

Needless to say, rising costs will ultimately trickle down to the consumer, unless manufacturers are willing to take a massive hit to their margins, which is unsurprisingly implausible. For instance, the WD SN7100 1 TB drive used to cost around $70 on Amazon not that long ago, but now retails for a whopping $200. The same applies to consumer DDR5 sticks, and the prices are unlikely to return to normal levels anytime soon.