RAM prices increase 200-500% seemingly overnight
Further compounding this, Micron Technology has stated in earnings disclosures that tight memory supply conditions are expected to persist into 2026 and beyond, even as capacity expansions are planned, due to sustained AI-driven demand.⁴
impact on hardware costs & system upgrades
The ongoing memory shortage is driving up component prices across the PC and hardware ecosystem. IDC projects that average PC prices will rise as memory costs increase, and OEMs such as Dell and Lenovo have acknowledged component-driven pricing pressure in forward-looking statements.⁵
For departments, this means hardware refresh plans—such as mobile computers, dispatch workstations, and command-center systems—must account for rising component costs and potential lead-time constraints as manufacturers prioritize enterprise and hyperscale customers.
strategic budgeting in a time of cost uncertainty
Given these market shifts, public-sector IT and finance leaders should reassess how they plan technology budgets for the next fiscal year. Gartner notes that incremental budgeting models often fall short during periods of supply volatility and recommends scenario-based forecasting for infrastructure and hardware spending.⁶
Guidance from Gartner and Deloitte emphasizes incorporating risk-adjusted buffers for inflation-sensitive technology categories—such as memory, storage, and mobile computing devices—rather than assuming stable pricing.⁶⁻⁷
Recommended approaches include:
Forecasting component inflation and supply risk for critical public-safety systems rather than relying on flat year-over-year estimates.⁶
Prioritizing mission-critical purchases earlier in the fiscal year to secure pricing and availability.⁷
Maintaining a contingency reserve for supply-constrained hardware to avoid mid-year funding shortfalls.⁶
These measures help agencies avoid disruptions to operations, deployment schedules, and grant-funded projects. If your agency is planning a system upgrade or hardware refresh—particularly for mobile, dispatch, or command-center systems—consider purchasing sooner rather than later. Current pricing reflects constrained supply conditions, and continued AI-driven demand may further increase costs in the months ahead.
SECTOR'S recommendation
At Sector Technology Group, we work closely with agencies to navigate volatile technology markets. Our team supports public-sector organizations with budgeting, procurement, and strategic purchasing tailored to mission-critical environments.
Whether you are planning a mobile device refresh, upgrading internal infrastructure, or preparing for the next budget cycle, Sector Technology Group helps ensure your agency secures the right technology at the right time—while staying aligned with fiscal and operational requirements.
ARE YOU READY TO UPGRADE YOUR DEPARTMENTS COMPUTERS?
Contact Sector Technology Group today to get ahead of the price hikes in rugged computer systems.
sources
- Reuters, AI boom reshapes global memory chip production, Dec. 2025.
- Reuters, Global memory chip shortage intensifies as AI demand surges, Dec. 3, 2025.
- IDC, Worldwide DRAM and NAND Market Forecast Update, 2025.
- Micron Technology, FY2025 Earnings Call & Investor Presentation, 2025.
- IDC, PC Market Outlook: Component Constraints and Pricing Impact, 2025.
- Gartner, IT Budgeting and Forecasting Best Practices Under Supply Volatility, 2024–2025.
- Deloitte, Technology Budgeting and Capital Planning in Inflationary Environments, 2024.
