Smartphone and PC prices expected to rise as AI surge depletes memory chip supply
We’re living in a moment where artificial intelligence (AI) isn’t just a buzzword; it’s reshaping global technology markets. From powering chatbots to training large language models and running massive data centers, AI needs computing power. And that demand is now eating into the supply of basic memory chips used in everyday devices like smartphones and PCs. Analysts warn this shift could push smartphone and PC prices upward in 2026 and beyond.
AI Surge Driving Hardware Demand
- Memory Need: AI workloads require high-performance memory like DRAM and HBM, essential for fast data handling in AI models and cloud systems.
- Data Center Expansion: Tech giants like Samsung and Micron are expanding AI-focused data centers, increasing stress on the memory supply.
- Allocation Shift: Memory once used for phones and PCs is now often prioritized for AI hardware, reducing consumer supply.
- Global Shortage: The 2024–2026 memory supply shortage is fueled by AI demand and production shifts.
Memory Chip Supply Constraints
- AI-Oriented Capacity: Chip makers prioritize high-end DRAM and HBM for AI servers, more profitable and in high demand.
- Production Limits: New memory factories take years and billions to build; planned expansions lag behind demand.
- Price Spike: DRAM inventories down to weeks; NAND flash doubled in price in six months.
- Yearly Increase: Memory prices rose 40–50% year over year in late 2025 and are expected to stay high into 2026.
- Competition: AI data centers, smartphone, and PC makers all compete for limited chips.
Impact on Smartphone and PC Prices
- Higher Production Cost: Memory chips are a major part of the BoM; price rise is either absorbed by manufacturers or passed to consumers.
- Smartphone Price Rise: Average smartphone prices could increase by ~6.9% in 2026 due to chip costs.Electronics Price Range: Overall electronics, including PCs, may rise 5–20% from AI-driven shortages.
- Smartphone Cost Impact: Even budget phones under $200 face 20–30% higher production costs.
- PC Price Impact: Dell and HP warn that memory cost increases are raising PC prices.
- Extended Price Pressure: Elevated memory costs may persist through 2026–2027 until new production comes online.
- Shipment Reductions: Higher costs may reduce smartphone and PC shipments; the budget segment will be most affected.
Industry Reactions and Adaptations
- Long-Term Contracts: Manufacturers lock in multi-year memory deals, limiting supply for smaller buyers.
- Design Adjustments: OEMs redesign products to use lower memory tiers or optimize usage, reducing costs.
- New Production Lines: Chip makers plan expanded factories, operational by 2027 or later.
- AI-Efficient Devices: Manufacturers push devices with efficient memory or mid-range models for price-sensitive consumers.
- Continued Price Pressure: Industry insiders expect memory cost increases and device price rises to continue.
Consumer and Market Implications
- Higher Prices: New smartphones and PCs will likely cost more.
- Slower Upgrades: Consumers may keep old devices longer to avoid higher costs.
- Regional Variation: Countries with high import tariffs or weaker currency may see sharper price rises.
- Innovation Opportunity: Shortages may drive new memory technologies and efficient hardware designs.
Conclusion
We’re entering a period where AI isn’t just transforming software, it’s reshaping hardware economics too. The huge appetite for memory chips from AI data centers is outpacing production and squeezing supplies for everyday electronics like smartphones and PCs. This imbalance is expected to push prices higher in 2026 and possibly beyond.
For consumers and industry players alike, this memory crunch serves as a reminder: technology is evolving fast, and supply chains must adapt just as quickly. Better planning, investment in new manufacturing infrastructure, and smarter, more efficient designs may help ease price pressures, but in the short term, higher device costs are likely here to stay.
FAQS
Prices are rising because AI-driven demand is straining memory chip supply, which is essential for devices.
DRAM and NAND memory chips are the main culprits, as AI workloads consume more of them.
Experts predict higher prices through 2026, until memory chip production catches up with demand.
Consumers may delay upgrades, consider mid-range devices, or look for sales and promotions to offset higher prices.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
