Gadget Prices Are Rising Across the Board Because of AI

Introduction

If you've felt lately that laptop, phone, or PC component prices are getting more and more ridiculous, you're not imagining it. Throughout 2026, the prices of RAM, SSDs, and all kinds of electronic devices have kept creeping up — and there's really just one main cause: the explosion in demand for hardware for artificial intelligence (AI).

This isn't just market gossip. Research firms such as Jefferies and Gartner have firmly projected that this memory price crisis will continue, and could even get worse through 2027.

Why Is AI Driving Up Gadget Prices?

The root of the problem lies in the supply chain for memory components: DRAM and NAND Flash. These two components are the "raw materials" of RAM and SSDs, and unfortunately, both are also hotly contested by the AI data center industry.

A few factors are making the situation worse:

AI servers consume memory in massive quantities. AI data centers are reportedly able to absorb up to 70% of total global memory production in 2026, from ordinary DRAM and NAND to high-bandwidth memory (HBM), which is far more expensive and complex, for GPU server needs.
Manufacturers prefer big contracts from data center companies over the consumer market, where margins are thinner. As a result, supply for home PCs, laptops, consoles, and smartphones has become tighter.
Some NAND manufacturers are deliberately cutting production to keep prices high — not because of raw material shortages, but as a business strategy to chase bigger profits from the AI sector.

How Bad Are the Increases?

The numbers from various research reports are pretty startling:

Source Projected Increase Period Jefferies Equity Research 40–50% Q3 2026 Jefferies Equity Research 30–40% (continued) Q4 2026 Jefferies Equity Research 40–45% year-on-year Throughout 2027 Gartner Up to 130% End of 2026

Gartner even noted that the share of memory costs in a device's Bill of Materials (BOM) jumped from 16% in 2025 to 23% in 2026 — meaning memory is now one of the most expensive components in a device.

Interestingly, this trend isn't uniform across markets. In Germany, for example, DDR5 RAM prices actually fell by around 20% over the past month thanks to stabilizing supply, while SSD and HDD prices kept soaring due to an up-to-87% surge in demand for NAND chips. In the United States, RAM prices are still rising, though not as aggressively as in 2025.

The Impact on Different Devices

Laptops

Major manufacturers such as Dell and Lenovo have openly announced price increase plans since late 2025. Laptops are predicted to rise 20–50% in 2026, with gaming laptops, ultrabooks, and AI-powered laptops hit hardest because they use large amounts of premium-grade memory.

Smartphones

Rising memory prices are felt most in the entry-level smartphone segment. Consumers in this segment are expected to drop out of the market up to 5 times faster than premium smartphone buyers, as the price gap becomes increasingly unaffordable.

PCs and Gaming Consoles

Budget PC builds and cheap laptops are expected to become increasingly rare. Xbox has reportedly announced price increases for its console lineup, and Apple is said to be raising prices on several products such as the iPad and MacBook.

AI PC Adoption Is Slowing

Ironically, these price increases are actually holding back the adoption of AI PCs themselves. The AI PC market penetration target, originally expected to reach 50%, is now projected to be delayed until 2028, because devices with AI features remain expensive while consumer purchasing power is limited.

How Are Consumers Responding?

With prices showing no signs of easing, a few shifts in consumer behavior are starting to appear:

Keeping devices longer. The lifespan of business PCs is expected to rise by 15% and consumer PCs by 20%, as people postpone upgrades.
Turning to the second-hand market. Many would-be buyers of new laptops are choosing used units in good condition instead of buying new at ever-rising prices.
Adjusting spec expectations. Buyers are becoming more realistic, choosing RAM/SSD capacities that match their actual needs instead of chasing the highest possible specs.

Conclusion

As long as demand for AI computing keeps growing this fast, pressure on memory component prices is unlikely to ease anytime soon. For consumers, this means shopping for gadgets needs a smarter strategy: watch for promotions, think about when to buy, and don't rush to upgrade unless it's truly necessary.

Note: The figures and projections in this article are based on market research reports as of early to mid-2026 and may change as the global supply chain evolves.