Computer Hardware Is Getting More Expensive. What's Going On?

Does it seem like hardware is getting more expensive? It's not your imagination. Since late last year, a number of hardware companies — including Dell, HP, Lenovo, Asus, and, most recently, Apple — have all raised prices on computers and other equipment or warned customers that price increases were coming.

As companies race to build data centers to power cloud-based generative AI models, the demand for certain hardware components has increased dramatically. And it's driving up prices across the industry.

Disclosure: TechSoup partners with Dell, HP, Lenovo, and Apple subsidiary Claris to provide discounted or donated products to nonprofits and libraries. These relationships did not influence the contents of this blog post.

Component Prices Skyrocket

According to a March, 2026 report from NAND Research, prices for DRAM — the kind of memory chips inside your PC — increased by a whopping 172 percent year-over-year in the third quarter of 2025. A more recent NAND Research report from May noted a furthern increase of over 90 percent in the first quarter of 2026, compared to the prior quarter. In both reports, the firm noted a similar increase in costs for NAND flash solid-state storage for PCs and mobile devices.

(Despite the similar names, NAND flash memory technology and NAND Research are not related to one another.)

More price increases appear likely. Just this week, TechSpot pointed to an analyst report that suggests that "memory prices [will] rise by 40% to 50% in the third quarter of 2026 compared to the prior quarter, and by another 30% to 40% in Q4." And, according to the report, prices could continue to increase into next year.

In addition, processors from AMD and Intel have been hard to come by. In late March, a story from Tom's Hardware, citing original reporting from Nikkei Asia, said that manufacturers were seeing a 10–15 percent increase in costs for processors, which was causing delays of up to six months.

While component shortages aren't new in the tech industry, Doug Getty at Rand Research suggests that AI has disrupted the industry enough to make component supplies and pricing more unpredictable over the longer term.

"The semiconductor industry is entering a new phase. It is a phase defined not by cyclical recovery, but by structural change," Getty writes. "AI is reshaping demand. Supply constraints are becoming more persistent. Disruptions are exposing hidden vulnerabilities. And global strategies are redefining how the ecosystem is organized."

What You Can Do About It

As nonprofits with limited budgets, these cost increases will hit many of us especially hard. And, unfortunately, it looks like they'll continue for a while. Mitigating them will take some creativity and planning. Here are a few ideas.

Re-Examine Your Upgrade Cycles

As equipment prices increase, you may have to make do with existing hardware for longer than you anticipated. So within your operation, consider the areas where you can stretch your existing hardware for longer. Focus your upgrade budget on areas of your operations where newer, faster hardware will make the biggest impact.

Consider a "Bring Your Own Device" Policy

A "bring your own device" (BYOD) policy is one that permits staff to use their own equipment for work purposes, assuming they meet certain requirements.

BYOD policies have benefits and drawbacks that need to be weighed carefully, and they aren't appropriate for every organization. On the plus side, they give your staff more flexibility to use the devices that they want to use, and they may lower your organization's own hardware costs. But they can open the door to liability and security risks, compliance headaches, data governance issues, and other infrastructure costs, among other things.

Before you adopt a BYOD policy, it's a good idea to discuss it with your IT, legal, and security operations teams.

Look at Refurbished Hardware Options

Refurbished hardware can be a cost-effective option to get the computers and mobile devices you need at reduced costs.

Vendors will sometimes have their own refurbished offerings, but TechSoup member organizations can request products through our Refurbished Hardware program. We offer refurbished laptops, desktops, smartphones, and other devices for significant savings over buying new equipment.

Our refurbished offerings are reconditioned with reliability in mind, and many products are backed by two-year warranties. Product selection varies, so you'll want to check back periodically to see what's new.