Why Is Business Hardware Getting So Expensive?

If you've asked us for a quote on a new laptop, a server, or even a handful of extra RAM sticks in the last few months and been surprised by the number, you're not imagining it, and it's not us padding the margin. Hardware pricing has moved more in the last twelve months than in the previous five years combined, and it caught most of the IT industry — including us — off guard.

Here's what's actually driving it, and what we think Perth businesses should do about it rather than just hoping it passes.

It's Not Tariffs. It's Memory.

The single biggest factor pushing up the price of everything from laptops to servers to network appliances is a global shortage of memory chips — DRAM and NAND flash. It comes down to simple supply and demand: the same factories that make the RAM in your office PCs also make the high-bandwidth memory that goes into AI servers, and right now AI is winning.

Samsung, SK hynix and Micron between them make almost all of the world's memory chips, and all three have been reallocating manufacturing capacity away from ordinary consumer and business-grade memory toward the specialised, higher-margin memory that hyperscalers like Microsoft, Google and Amazon need for AI data centres. Industry analysts have described 2026 as an "inflexion point" where demand has permanently outpaced supply, rather than a normal boom-and-bust cycle that will simply correct itself in a few months.

The numbers are genuinely startling. Server-grade DRAM prices were forecast to rise more than 50%, and by some estimates up to 70%, in the first quarter of 2026 alone — on top of roughly 50% rises already absorbed through 2025. Closer to home, standard 32GB DDR5 RAM kits sold in Australia reportedly jumped around 38% in a single month, from about $499 to $689. Some analysts, including SK hynix itself, have suggested the underlying shortage could persist well beyond 2030 rather than easing next year.

Tariffs and Currency Are Making It Worse

Memory isn't the only pressure. Most PC components — processors, screens, batteries, storage — are manufactured across China, Taiwan, Vietnam, Japan and South Korea, and are priced in US dollars on global markets. US trade tariffs on components sourced from China add cost throughout that supply chain, and manufacturers have been upfront that they can't absorb all of it themselves. Australia doesn't impose these tariffs directly, but because component pricing is set globally, the effect flows through to local invoices regardless. Major laptop brands have flagged price rises of 15–30% through 2026 as a result.

Windows 10's Retirement Picked a Bad Time to Land

Microsoft ended support for Windows 10 in October 2025, and Windows 11's hardware requirements mean a lot of older business PCs can't simply be upgraded in place — they need to be replaced. That created a wave of replacement demand right as the memory shortage was tightening supply, which is about the worst possible timing for anyone hoping to defer a hardware refresh until prices settled down.

On top of that, hardware vendors are increasingly building "AI PC" features — bigger baseline RAM, dedicated NPUs — into even standard business laptop ranges, which quietly pushes up the entry price for a normal work laptop even if your team has no particular need for on-device AI.

What This Actually Means for Your Business

A few practical implications we're building into hardware conversations with clients right now:

• Budgets set six to twelve months ago are already out of date. If you costed a hardware refresh earlier this year, it's worth re-quoting before you commit — the number has likely moved.
• Deferring a purchase isn't necessarily saving you money. Unlike a normal market dip, most current forecasts point to prices staying elevated for years, not months. Waiting for a sale that reflects last year's pricing may not happen.
• Ageing hardware deserves a second look before you replace it. Sometimes extending the life of a device another 6–12 months with a RAM or storage upgrade — bought before those components rise further — is the more sensible move than a full replacement at inflated prices.
• Leasing and financing become more attractive. Spreading the cost of a refresh over its useful life protects cash flow against a market that's moving faster than most budgets are built to handle.
• Emergency purchases cost the most. A server or laptop bought in a hurry after a failure, with no time to shop around or plan, will almost always cost more per unit than one planned as part of a scheduled refresh.

Where We'd Start

Wrapping Up

None of this is Datatech marking up hardware — if anything, we're absorbing the same supplier increases everyone else in the industry is. It's a genuine, well-documented global shift driven by AI's appetite for memory chips, made worse by tariffs and unfortunate timing with Windows 10's retirement. The businesses that come out of it in the best position won't be the ones who wait for prices to come back down — they'll be the ones who plan their next hardware refresh with clear eyes about where the market actually is.

If you're not sure where your own hardware stands, or when your next refresh should realistically happen, we're happy to run through it with you.