AI‑Driven Chip Shortage Triggers Broad Tech Price Surge
Rising Component Costs
Data‑center demand, largely driven by artificial‑intelligence applications, has caused a sharp increase in the price of memory and storage chips. DDR5 memory is reported to be about 4x more expensive than it was in mid‑2025, and many solid‑state drives have doubled in price. Some memory brands have even exited the consumer market entirely.
Impact on Pre‑Built Systems and Consoles
Higher RAM and SSD costs are affecting desktops, laptops, mini PCs and even single‑board computers like the Raspberry Pi. Budget and mid‑range models, which operate on thin profit margins, are likely to pass on cost increases sooner than premium machines. Current inventory of pre‑built laptops built before the latest price hikes offers some of the best deals, often at discounted rates as newer models replace them.
Console manufacturers are also feeling the pressure. Increased manufacturing costs have already impacted pricing, and accessories such as SSD upgrades for the PlayStation 5 are becoming more expensive. Companies like Sony note that existing inventory softens the impact for now, but future price rises are possible.
Effect on Portable Devices and Storage
Rising RAM and storage costs are beginning to affect smartphones, tablets and other portable devices, especially on the affordable end. While Apple may buffer these increases due to scale, many lower‑priced Android brands are expected to pass on costs quickly. Prices for everyday storage media—SD cards and USB drives—have risen by roughly 50% or more, and larger capacity drives can be up to twice as expensive as a year ago.
Other Categories Under Watch
Analysts predict that panel costs for TVs and monitors will rise, potentially increasing prices for smart TVs. Audio equipment such as soundbars and high‑resolution DACs could also see price pressure. Even small controller chips used in smart appliances and chargers are expected to become more costly.
How to Navigate the Increases
Consumers are encouraged to act promptly on existing stock, prioritize essential upgrades—especially a minimum of 16 GB of RAM—and consider storage scaling back if cloud alternatives are viable. Watching for shrink‑flation, such as reduced memory or storage in new models without price drops, is critical. Checking reviews for spec changes and seeking bundle deals can help mitigate the impact.
Outlook
The price pressures are expected to last through at least 2027, with potential volatility from supply‑chain disruptions in Taiwan and tariff policies. However, emerging competition from new memory manufacturers in China may provide some relief, though not immediate price reductions.
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