.png){kind=logo}
Artificial intelligence’s fast-paced growth is beginning to disrupt the consumer electronics market. Smartphones and personal computers are likely to become more expensive in the coming months. Industry experts warn that prices could rise by as much as 20% as memory chips such as RAM and SSDs face a prolonged supply crunch driven by soaring AI data centre demands.
Over the past few months, prices of memory components have already doubled and, in some cases, tripled, on aggressive procurement by AI-focused companies. These firms are locking in large volumes of high-performance memory to support data centres running advanced AI models. This is leaving a limited supply for consumer device makers.
Major memory manufacturers Samsung Electronics and SK Hynix control over 70 % of the global memory market. The companies have confirmed that their production capacity is fully booked for the year. According to market research firm IDC, the current shortage is expected to last until at least 2027, as supply struggles to keep pace with AI-driven demand.
IDC also noted that consumers may be entering ’the end of cheap and abundant memory.’ It is expected to be at least in the near to medium term, as manufacturers prioritise higher-margin enterprise and AI customers.
A report by the Financial Times suggests that leading consumer electronics brands, including Dell, Lenovo, Raspberry Pi, and Xiaomi, are preparing for price increases ranging between 5% and 20%. Some smartphone makers may also respond by launching devices with lower RAM configurations to control costs.
During an earnings call last November, Dell COO Jeff Clarke said the company had never witnessed costs rising at such speed. Lenovo, the world’s largest PC maker, has reportedly begun stockpiling memory chips and other key components to cushion the impact of future shortages.
Also Read: TSMC to Raise Advanced Chip Prices 3%-10% From 2026 as AI Demand Outpaces Supply
Analysts remain cautious about near-term relief. Peter Lee of Citigroup said AI data centre demand has exceeded expectations and that no major capacity expansion is likely before 2027. ASUS has already announced price increases starting January 5, while Dell is reportedly raising prices on high-end memory products.
Companies like Apple and Samsung, however, may be better positioned to absorb the impact thanks to long-term supply contracts. As AI adoption accelerates globally, consumers may soon feel its influence in everyday devices.
