AI boom pushes up prices of iPads, consoles, laptops as memory shortage deepens

The rapid growth of artificial intelligence is driving up prices of popular consumer electronics as manufacturers struggle with a global shortage of memory chips.

Demand from AI data centres has surged, putting pressure on supplies of memory components used in devices ranging from laptops and tablets to gaming consoles, Caliber.Az reports per US media.

While the boom has benefited memory producers such as Micron Technology, Samsung Electronics and SK Hynix, consumers are facing higher costs for products from companies including Apple, Microsoft and Nintendo.

Analysts warn the shortage could last until at least 2028 as chipmakers build new factories, with some saying prices may never fully return to previous levels.

Asha Sharma, CEO of Microsoft’s Xbox division, recently described the memory shortage as “the most severe hardware crisis in history”.

Consoles, tablets and laptops hit hardest

The price increases are already affecting devices such as the PlayStation 5, Nintendo Switch 2, Valve Steam Deck, iPads and MacBooks. Microsoft has also announced plans to raise Xbox prices from August.

The higher costs are expected to weigh on technology sales. The International Data Corporation (IDC) forecasts global PC shipments will fall 11.3% in 2026, while the smartphone market is projected to record its steepest annual decline.

However, products such as smartwatches and wireless earbuds are expected to face less pressure because they require less memory.

“That largest bump has happened now,” said Jitesh Ubrani, director of consumer devices research at IDC. “They’ll continue to rise at a slower pace going forward, but they’re still rising.”

Experts advise careful buying

Some analysts recommend purchasing devices sooner rather than later, as price cuts may take time to reach consumers even if memory costs eventually decline.

“It’ll probably take at least a year for those changes to trickle down to consumers,” said Mike Howard, vice president of memory coverage at TechInsights.

However, buyers should consider product launch cycles before making purchases. Apple typically releases iPhones in September and iPads and Macs around March or October, while Samsung, Google and laptop makers follow their own annual schedules.

Although Apple has not increased iPhone prices so far, Howard warned the company could eventually need to raise prices significantly.

“We should start thinking about a $1,500 iPhone instead of a $1,000 (or) $1,200 iPhone,” he said.

Refurbished devices gain appeal

Consumers looking to avoid higher prices could turn to refurbished products, which are sold by major retailers after inspection and testing.

“These are mostly new items that are returned,” said Gadjo Sevilla, an analyst covering technology and AI for eMarketer, adding that refurbished devices often perform similarly to new ones.

Experts caution against buying older-generation devices that may soon require replacement, while suggesting alternatives such as upgrading storage or replacing batteries.

With semiconductor production requiring years to expand, analysts say the memory shortage is unlikely to end quickly.

“It’s not a simple process, I think everyone kind of sees that now,” Howard said. “It’s super complicated. This is the most complex manufacturing on the planet.”

By Aghakazim Guliyev