- AI data center demand causes pressure on memory supply, leading to higher prices, analysts say
- Budget smartphones could see the biggest price increases, iPhones less so
- Many PC manufacturers expect 15-20% higher prices from the second half of 2026
The semiconductor industry faced an unprecedented DRAM/NAND shortage at the end of 2025, and it could continue “well into 2027” and lead to price increases across consumer and business laptops and mini PC devices thanks to AI data center demand, new IDC research has claimed.
The report did not detail specific forecasts, but revealed “moderate” and “pessimistic” scenarios showing a contraction of the smartphone market of up to 5.2% in 2026 and up to 8.9% for PCs over the same period.
Not only is demand outstripping supply, but memory manufacturers are reallocating capacity to AI data center memory at higher margins, leaving consumers with shortages and higher costs.
Your next PC, tablet or smartphone may cost more
IDC notes that memory accounts for about 10-20% of the cost of building a smartphone. With rising costs, manufacturers will either have to raise their prices accordingly to save on upgrades.
Low-margin Android OEMs such as Xiaomi, Oppo and Vivo are most exposed and therefore more likely to pass the cost on to consumers, while Apple and Samsung are likely better insulated thanks to higher margins.
Still, IDC warns that flagship RAM upgrades may be delayed.
Price increases may be more amplified for PCs, where lack of memory is not the only factor affecting pricing. Higher specifications to support Windows 11 after Windows 10’s phase-out and the rise of AI PCs also increase costs. Copilot+ PCs, for example, require at least 16GB of RAM, with high-end systems often doubling that.
Major vendors such as Lenovo, Dell, HP, Acer and Asus have warned of 15-20% price increases from the second half of 2026, making now the perfect time to upgrade.
“The severity and duration of the shortage will be determined by how quickly production capacity can be expanded and how effectively demand rebalances across segments,” noted Data & Analytics VP for Devices, Francisco Jeronimo.
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews and opinions in your feeds. Be sure to click the Follow button!
And of course you can too follow TechRadar on TikTok for news, reviews, video unboxings, and get regular updates from us on WhatsApp also.
