November 29, 2025 – During its fiscal Q4 2025 earnings call, HP revealed that the impact of memory price hikes will become more pronounced in the second half of fiscal 2026.
Currently, for a standard PC model, memory accounts for 15 – 18% of the total production cost, according to the company.
HP has built up a substantial inventory of memory components and secured long – term supply agreements with upstream suppliers. Additionally, it has implemented a series of strategies to mitigate the impact of potential price increases. These include certifying low – cost suppliers, reducing memory configurations in some products, raising product prices, and steering customers towards higher – end models that are less sensitive to memory price fluctuations. As a result, the company expects to largely offset the effects of rising memory costs in the first half of fiscal 2026 (FY2026H1). However, in the second half of the fiscal year (FY2026H2), the pressure from memory price hikes is likely to weigh on the profit margins of its PC business.
When it comes to product pricing adjustments, HP plans to adopt a widespread yet targeted approach. The company will analyze each product category in different regions on a case – by – case basis to determine the appropriate pricing strategies.
Moreover, HP disclosed that the penetration rate of AI – enabled PCs in its shipments reached over 30% in fiscal Q4 2025 (FY2025Q4). Looking ahead to fiscal 2026, the company anticipates that this proportion will rise to 40 – 50%.
