• Refurbished demand shift: Brand-new laptop prices have surged around 80% since November due to memory and SSD shortages, prompting market demand to shift toward refurbished computers as new device sales decline.
• Margin expansion outlook: An upgraded FY27 guidance is supported by widening price gaps between new and refurbished devices, allowing the company to price refurbished units at higher percentages of new computers (potentially 40% to 50%) to boost bottom-line margins.
• Memory price trajectory: Management expects memory price increases to be a permanent reset lasting through at least 2028 or 2029, driven by massive AI investments projected to reach $700 billion this year and $1 trillion next year amid tight fabrication capacity.
• Inventory and procurement: The company is intentionally maintaining higher inventory levels sourced from 775 global suppliers to lock in attractive acquisition costs before used-computer purchase prices begin to rise.