Dell Raises PC Prices as AI Demand Soars: What to Know
Starting December 17, Dell Technologies will implement price increases across its commercial product lines, impacting corporate clients significantly. This information comes from an internal memo distributed to staff on December 9, which has been reviewed by El-Balad. The price hikes will primarily affect Dell’s commercial business, generating around 85% of revenue from corporate sales within its Client Solutions Group.
Dell Price Increases Driven by AI Demand
The surge in demand for artificial intelligence (AI) infrastructure is creating a significant supply shortage of essential memory and storage components. This scarcity has implications across the entire PC industry, affecting major competitors such as Lenovo and HP.
According to a Dell spokesperson, the company is responding to the market conditions to maintain supply continuity and uphold customer value. The spokesperson highlighted the resilience and global diversity of Dell’s supply chain, stating it is equipped to adapt to macroeconomic and regulatory changes.
Projected Price Changes
Future pricing will depend on specific configurations concerning memory and storage capacities. Key components in laptops, including Dynamic Random-Access Memory (DRAM) and Non-Volatile Flash Memory (NAND), are experiencing marked increases.
- For models with 32 GB of memory, prices will rise between $130 and $230.
- Devices equipped with 128 GB of memory will see increases from $520 to $765.
- The cost for 1 TB of additional storage will escalate by $55 to $135.
Additionally, prices will also rise for products featuring Nvidia Blackwell GPUs. Key examples include:
- Dell Pro 55 Plus 4K Monitor: an increase of $150 from $1,349.99.
- Laptop with Nvidia RTX PRO 500 Blackwell GPU (6GB): up by $66.
- 24 GB GPU models: costs will increase by $530.
Sales Team Preparations and Market Conditions
In light of the impending price hikes, Dell’s sales teams received an email on November 25 outlining critical actions to prepare. The company stressed the urgency of engaging major accounts and closing deals to offset rising costs. The tightening supply of DRAM and NAND chips due to AI demand has prompted significant contract price increases.
Despite the increases, some costs will be absorbed internally by Dell, limiting possible discounts for sales teams. During a recent earnings call, Jeff Clarke, Dell’s COO, referred to the speed of rising prices as “unprecedented,” stating that demand is surpassing supply.
Underlying Chip Shortage Factors
The ongoing chip shortage primarily stems from the high demand for DRAM and NAND, spurred by advancements in AI models. Global supply chain disruptions have further exacerbated these issues, prompting major chip manufacturers such as Samsung, SK Hynix, and Micron to raise their prices significantly.
According to Counterpoint, an industry research firm, DRAM prices may rise by 30% by the last quarter of 2025, with a 50% increase already recorded in 2023. Analysts warn that this supply shortage is expected to continue into 2026, likely affecting all PC vendors.
As Dell prepares for this challenging landscape, customers seeking to purchase new laptops may need to adjust to these rising costs associated with AI-driven technological demands.
