A new report from Gartner warns that budget-friendly personal computers—those costing under $500—are at risk of disappearing entirely by 2028. The primary driver? A projected 130% increase in the cost of key components like RAM and solid-state drives (SSDs). This surge will likely push overall PC prices up by around 17%, squeezing out the most affordable options.
Why This Matters: The Shrinking Access to Technology
This isn’t just about cheaper gadgets; it’s about digital access. Sub-$500 PCs are often the only way for many students, low-income households, and casual users to participate in the digital world. Eliminating this segment means limiting technology access for those who rely on it most. The trend reflects a broader pattern: rising production costs across electronics, from smartphones (also predicted to jump 13% in price by 2028) to essential computing devices.
The Impact on Consumers and Manufacturers
Gartner analysts predict that as prices rise, consumers will hold onto their existing devices longer, delaying upgrades. This creates a double-bind for PC manufacturers: increased costs combined with reduced demand for replacements.
The shift will also slow the adoption of “AI PCs” —machines designed to run artificial intelligence tasks locally. Gartner estimates it will take until 2028 for AI-capable PCs to make up half of the market, further delaying the rollout of new technologies.
Who’s Affected?
The sub-$500 PC market primarily consists of:
- Entry-level laptops and desktops: Basic machines for schoolwork, browsing, and light office tasks.
- Chromebooks: Google’s ChromeOS-powered devices, often used in education.
- Tablet hybrids: Versatile devices with touchscreen functionality.
These devices are critical for students, families with limited budgets, and users who don’t need high-end processing power. Their disappearance would force consumers to either spend more or stick with aging hardware.
The disappearance of the sub-$500 PC segment represents a growing divide in technological accessibility, making digital inclusion more challenging for low-income individuals and students.
