Why Rising Hardware Costs May Push India’s PC Demand Down in 2026
About the Issue
A sharp surge in memory and storage prices is beginning to reshape India’s personal computer ecosystem. With RAM prices rising three to four times in a short span, the average consumer is being priced out, raising concerns that PC demand could decline meaningfully in 2026 even as enterprise and AI-driven demand accelerates.
The Indian PC market has always been a delicate balance between affordability and aspiration. For years, falling component prices made laptops and desktops accessible to students, professionals, and gamers alike. That cycle now appears to be reversing. A sudden spike in memory and storage costs is altering purchase behaviour across segments, with the consumer market facing the maximum pressure.
Industry voices suggest that demand from households and gaming enthusiasts could contract by mid-to-high single digits in 2026. This is not because users no longer need computing power, but because the cost-benefit equation has turned unfavourable. When a core component like RAM becomes several times costlier, the final system price jumps sharply, often beyond what a value-conscious buyer is willing to pay.
Rising RAM and storage costs are reshaping India’s PC market. Consumer demand may fall sharply in 2026 while enterprise and AI-led demand tells a different story.
What Is Driving the Cost Shock?
The current cost escalation is not demand-driven in the traditional sense. Instead, it reflects a supply-side reallocation where memory manufacturers have diverted capacity toward high-margin segments such as AI data centres, cloud infrastructure, and enterprise computing.
RAM and storage are no longer just consumer components; they are strategic inputs for artificial intelligence workloads. Training large models, running inference engines, and supporting hyperscale data centres require vast amounts of high-performance memory. As global capital flows toward AI infrastructure, component suppliers naturally follow margins, leaving the consumer electronics segment exposed.
For an Indian consumer, this shift is acutely painful. A configuration that was considered mid-range just a year ago now appears premium-priced. Entry-level buyers are postponing purchases, while enthusiasts are trimming specifications with the hope of upgrading later. This behavioural shift directly feeds into lower unit volumes.
How the Cost Structure Has Changed
| Component | Earlier Cost Share | Current Cost Share |
|---|---|---|
| RAM & Storage | ~10–15% | ~30–40% |
| Processor | ~25% | ~25% |
| Other Components | ~60% | ~35–45% |
This rebalancing means that even modest upgrades now carry a disproportionate cost. For households managing tight budgets amid inflation in other essentials, discretionary spending on PCs becomes the first casualty.
Consumer vs Enterprise: A Clear Divergence
While consumers pull back, enterprises are moving in the opposite direction. Companies in sectors such as visual effects, machine learning, analytics, and satellite mapping continue to place large orders despite higher prices.
For enterprises, computing infrastructure is not discretionary. It is a productive asset that directly supports revenue generation. Many firms are accelerating procurement to hedge against further price increases, effectively pulling future demand into the present. This explains why enterprise volumes remain resilient even as consumer sentiment weakens.
This divergence has important implications for investors tracking technology supply chains. Volume growth may increasingly come from fewer but larger buyers, altering margin dynamics and bargaining power across the ecosystem.
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Gaming Market: From Aspiration to Postponement
Gaming has been one of the fastest-growing subsegments of the Indian PC market. However, this category is also the most sensitive to component pricing. High-performance GPUs already command premium pricing, and when memory costs multiply, the final bill becomes prohibitive.
The result is a slowdown in upgrades rather than a complete exit. Gamers are opting for lower RAM configurations or delaying purchases entirely. While this preserves long-term demand, it creates a near-term air pocket in sales volumes.
What This Means for India’s PC Ecosystem
The likely outcome is a bifurcated market. Entry-level and mid-range consumer demand may contract, while premium enterprise demand remains firm. Assemblers and system integrators will need to adapt by managing inventory carefully and offering flexible configurations.
From a policy standpoint, the episode also raises questions about domestic component manufacturing and supply resilience. Heavy dependence on global memory cycles exposes local markets to volatility that is disconnected from domestic demand conditions.
Investor Takeaway
Investor Takeaway – by Gulshan Khera
The projected decline in consumer PC demand is not a sign of structural weakness, but a reflection of temporary cost distortions caused by the global AI investment cycle. Investors should distinguish between short-term volume pressure and long-term digitisation trends. Companies aligned with enterprise, cloud, and AI infrastructure are likely to remain resilient, while consumer-facing players may see earnings volatility. For consistent market insights and disciplined analysis, read free content at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
