AI Demand Drives Up Prices of Consumer Electronics Amid RAM Shortage
Surging demand for AI data centers has led to a global RAM shortage, causing significant price increases in consumer electronics such as laptops, smartphones, and gaming consoles.
The rapid expansion of artificial intelligence (AI) data centers has intensified global demand for dynamic random-access memory (DRAM), leading to a significant shortage and subsequent price increases in consumer electronics.
In the first quarter of 2026, DRAM contract prices surged by 90–95% compared to the previous quarter, with projections indicating a further 58–63% increase in the second quarter. This escalation is primarily driven by AI data centers consuming vast amounts of high-bandwidth memory, which requires approximately three times the wafer capacity of standard DRAM.
As a result, manufacturers are reallocating production capacity to meet the needs of AI infrastructure, reducing the availability of consumer-grade memory. This shift has led to price hikes across various consumer electronics. For instance, Samsung's Galaxy S26 smartphone is priced $300 higher than its predecessor, the S22. Similarly, Sony increased the price of its PlayStation 5 in Australia to $1,000, up from its 2020 launch price of $750.
The shortage has also impacted other sectors. Wi-Fi routers, which rely on memory components, have seen production costs rise, with memory now accounting for over 20% of manufacturing expenses, up from 3%. Additionally, camera manufacturers like Canon have indicated potential price increases due to escalating memory costs.
Industry analysts anticipate that these supply constraints and elevated prices will persist into 2027 or 2028, as expanding memory production capacity is a time-intensive process. Consumers are advised to consider purchasing necessary devices sooner rather than later, as prices are expected to continue rising in the foreseeable future.
