- Memory prices have doubled and tripled in recent months
- Device makers warn of 5–20 per cent price increases
- Supply pressures are expected to last until at least 2027
The global rush to build artificial intelligence systems is driving up the cost of memory chips and beginning to raise prices of smartphones and personal computers, according to industry reports and company statements.
Prices of key components such as RAM and SSDs have surged over the past few months, with some products doubling or even tripling in cost.
The pressure, initially confined to AI servers, is now spreading across the wider consumer electronics market.
AI demand accelerates
More than 70 per cent of the global memory market is controlled by Samsung Electronics and SK Hynix, both of which have said their production capacity for the year is fully booked.
Research firm International Data Corporation said demand from AI data centres continues to outstrip supply and warned the shortage could last until at least 2027.
IDC said memory manufacturing is increasingly being redirected away from phones and PCs to support AI infrastructure. It expects DRAM supply growth to slow to 16 per cent year-on-year in 2026, well below historical levels.
The firm warned this could mark “the end of an era of cheap, abundant memory and storage," as quoted in a news report.
Citigroup analyst Peter Lee reportedly said AI data centre demand has been far stronger than expected and that supply is likely to remain tight until 2027, with no significant new capacity planned.
Device makers brace for higher costs
A report by the Financial Times said consumer electronics makers including Dell, Lenovo, Raspberry Pi and Xiaomi are warning that the chip crunch could push prices up by between 5 and 20 per cent.
During an earnings call in November, Dell’s chief operating officer Jeff Clarke reportedly said the company had never seen “costs move at this rate”.
Some manufacturers have already acted. Asus said it would raise prices on several products from January 5, while Dell is reportedly planning increases on high-end memory options ranging from $55 to $765 (£45 to £620).
Lenovo, the world’s largest PC maker, has begun stockpiling memory chips and other critical components to protect itself from future shortages.
Market analysis firm Counterpoint Research expects the impact to be uneven. It forecasts global smartphone shipments will fall 2.1 per cent in 2026 and said memory prices could rise 40 per cent through the second quarter of 2026.
Counterpoint senior analyst Yang Wang reportedly said Apple and Samsung are better positioned to absorb higher costs, while lower-end manufacturers face tougher trade-offs.
Even so, Counterpoint expects average selling prices to rise 6.9 per cent.
For consumers, that could mean premium smartphones edging closer to £1,010 ($1,281), up from about £950 ($1,199) in 2025, as higher memory costs quietly filter through the supply chain
