Hewlett-Packard, one of the leading personal computer manufacturers, has announced that due to escalating prices for random access memory (RAM), this single component now accounts for approximately 35% of the total cost of PC hardware.
To put this into perspective, that percentage was merely in the range of 15-18% during the previous quarter, signifying an increase of roughly 100% even for HP. Furthermore, the firm indicated it anticipates continued upward price movement throughout the current year.
Despite these challenges, HP managed to secure year-long supply agreements for memory and onboarded some new suppliers (potentially manufacturers from China), which enabled the company to build up crucial stockpiles of RAM for its main product lines.
Equally significant is the statement that HP has expanded the integration of lower-cost sourcing options across its entire product portfolio by streamlining end-to-end planning processes to cut down on logistics expenses. In simpler terms, the company began procuring less expensive parts, raw materials, and so forth.
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