The rising demand driven by the development of artificial intelligence is leading to increased prices for various electronic devices, such as the iPad and Nintendo Switch. This situation is linked to higher memory consumption in data centers, which creates a shortage of critical computing hardware.
The need for memory to quickly analyze information in data centers has caused a surge in demand for this component. While this benefits memory manufacturers like Micron, Samsung, and SK Hynix, it negatively affects consumers. Chipmakers cannot supply enough memory for both corporate data centers and consumer electronics, causing shortages and pushing up the cost of products from Apple, Microsoft, and Nintendo.
Experts predict that a quick resolution to this problem is unlikely; the shortage is likely to persist until at least 2028 while memory giants build new production capacities. Furthermore, some analysts do not expect prices to return to pre-crisis levels.
The most noticeable price increases are observed in the segments of gaming consoles, tablets, and laptops. Among the expensive devices that have become more costly in recent months are the PlayStation 5, Nintendo Switch 2, Valve Steam Deck, as well as several Apple products, including iPad and MacBook models. Microsoft has announced plans to raise Xbox prices in August.
Analysts warn that this will put significant pressure on smartphone and laptop sales. According to International Data Corporation (IDC) data, global PC shipments are expected to decline by 11.3% in 2026, and the smartphone industry is forecasted to experience the sharpest annual decline.
However, not all tech products are affected; devices like wireless headphones and smartwatches require significantly less memory. Regarding more expensive goods, the forecast is mixed: prices will continue to rise, but the steepest jumps may already be behind us.
Some analysts advise making purchases now before prices increase further. According to Mike Howard, Vice President of Memory Coverage at the research firm TechInsights, even if component memory prices fall, it will take at least a year for these changes to reach end consumers.
Nevertheless, the decision depends on the specific product, as many technology companies traditionally release new gadgets in the autumn before the holiday season. For example, it is not advisable to buy an iPad if Apple is preparing to release a new model.
Tech companies tend to launch new devices around the same time each year: Apple's iPhone comes out in September, while iPads and Macs are released in March or October; Samsung Galaxy phones in the first quarter; Google Pixel phones in August; and laptops from various companies in January or June.
Although Apple has not yet raised prices on the iPhone, Howard estimates that companies will likely have to increase the cost of their smartphones by approximately $250–$300 to maintain their margins. He notes that one should consider buying a $1500 iPhone instead of a $1000 or $1200 model.
Buyers wishing to avoid the current price hikes can look at the secondary market. Retailers such as Amazon, Apple, and Samsung offer certified refurbished or repaired product programs, selling used goods at a discount. Companies state on their websites that these items undergo inspection and testing before resale.
Ghadjo Sevilla, an eMarketer analyst covering technology and AI, noted that most of these items are simply returned new units, adding that the performance of refurbished gadgets often does not differ significantly from new ones.
Consumers should, however, be cautious when purchasing devices that are several years old to avoid the need for an immediate upgrade. Restoration programs usually offer many relatively new devices, as retailers and carriers encourage trading in old devices for discounts on newer models.
Consumers can also consider opting for additional cloud storage or battery replacement instead of buying a new phone. Howard emphasized that resolving the memory shortage is unclear, as launching new production lines is a complex and multifaceted process that takes years, and the industry is moving as fast as possible.
