Another round of price increases for consumer electronics is underway, driven by the AI industry’s insatiable demand for memory chips that is diverting supply away from phones, computers and gaming consoles.
Apple raised Mac and iPad prices by up to US$300 (approximately £240) in June, citing memory costs. Xbox followed with increases of up to US$151 (approximately £122). PC makers including Dell have raised prices by 6 to 8 percent. And analysts say more increases are coming.
At the root of the problem is a structural shift in how the world’s three largest memory manufacturers — Samsung, SK Hynix and Micron — allocate their production capacity. AI data centers require enormous quantities of high-bandwidth memory (HBM), which sits directly on AI accelerator packages and commands far higher margins than the standard DRAM and NAND chips used in consumer devices.
IDC has described the shift as a “potentially permanent, strategic reallocation of the world’s silicon wafer capacity.” The top memory makers are prioritizing HBM and enterprise-grade products, leaving fewer wafers available for the DDR5 DRAM and NAND flash that go into laptops, smartphones and game consoles.
Memory can represent 15 to 20 percent of the total bill of materials for a mid-range smartphone and 10 to 15 percent for a high-end flagship. As memory prices surge, manufacturers face a choice: raise prices, cut specifications or both.
The impact is not uniform. Apple and Samsung, as market leaders with long-term supply agreements, are partially hedged against the worst of the increases. But smaller PC vendors, DIY system builders and lower-tier Android manufacturers are being hit hardest. IDC expects average PC selling prices to rise by 4 to 6 percent in a moderate scenario and up to 8 percent in a more pessimistic outlook.
Industry analysts have described the situation as “RAMageddon,” with consumers ultimately bearing the cost of the AI boom through more expensive everyday electronics.
Sources: All Your Favorite Gadgets Are Getting Way More Expensive … Again (Wired, July 3, 2026); Why you’ll pay more for phones and computers in 2026 (ZDNet, January 2026)