PCs under $500 to “disappear by 2028” predicts analyst. Apparently water’s wet, too.

Gartner Predicts Disappearance of Sub-0 PCs by 2028

In a recent analysis, tech research firm Gartner has forecasted a significant shift in the personal computer market, projecting that the sub-0 entry-level PC segment will vanish by 2028. This prediction stems from a notable 130% increase in the combined costs of memory and SSDs, which is expected to contribute to an overall 17% rise in PC prices by 2025.

While the report does not explicitly attribute these rising component costs to the surge in artificial intelligence (AI), it highlights “soaring memory costs” as a primary factor. The resulting impact is anticipated to be a 10.4% decline in PC shipments this year, a contraction not seen in over a decade. Ranjit Atwal, Senior Director Analyst at Gartner, notes that higher prices will limit the variety of available devices, prompting consumers to retain their current systems for longer periods, thereby altering traditional upgrade cycles.

Atwal elaborates that these market dynamics will lead to an increase in the average lifespan of PCs, with business users expected to hold onto their devices for 15% longer and consumers for 20% longer by the end of 2026. However, this delay in upgrades raises concerns regarding heightened security vulnerabilities, as users may be reluctant to invest in newer, more secure technology.

On a more optimistic note, Atwal anticipates that the rising prices of AI PCs will postpone the expected 50% market penetration of such devices until 2028. This delay may provide a brief respite for consumers amidst the ongoing price hikes.

One of the most significant insights from the report is the indication that elevated RAM and SSD prices are likely to persist longer than previously anticipated. While some analysts had predicted a market stabilization by mid-year, Gartner’s findings suggest otherwise.

It is essential to recognize that part of this price escalation can be attributed to the broader trend of inflation, which has affected various sectors, including PC components. Consequently, the expectation that PCs would eventually exceed the 0 threshold has become a reality sooner than many had hoped.

Despite the financial pressures, gamers can find solace in the fact that numerous titles remain accessible without requiring hefty investments in new hardware. For instance, the system requirements for games like Resident Evil Requiem and Marathon are relatively modest, and upcoming indie releases, such as Super Meat Boy 3D, promise even lower requirements, allowing players to enjoy gaming without breaking the bank.

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PCs under $500 to "disappear by 2028" predicts analyst. Apparently water's wet, too.