Smartphones, PCs to get costlier in 2026: Here's why
What's the story
The cost of many electronic devices, from smartphones to PCs, could see a significant increase in 2026. This is mainly due to the sharp rise in RAM prices. Once one of the most affordable computer components, RAM has seen its price more than double since October 2025. The surge is primarily driven by the rapid expansion of data centers powering artificial intelligence (AI), which also require RAM.
Market impact
Supply-demand imbalance leads to price increases
The sudden surge in demand for RAM has created a supply-demand imbalance, forcing everyone to pay more. While manufacturers usually absorb small cost increases, larger ones are often passed on to consumers. Steve Mason, general manager of CyberPowerPC, a computer manufacturer, said they are seeing costs around 500% higher than just a few months ago. He warned that these increased component costs could "force" manufacturers to make tough decisions about pricing.
Component significance
RAM's ubiquitous role in computing devices
RAM is a vital part of nearly every kind of computer. It stores code while using a device and without it, tasks like reading this article wouldn't be possible. Danny Williams from PCSpecialist expects price increases to continue well into 2026 due to the high demand for RAM. He observed that some vendors with larger inventories have more subtle price increases (1.5x to 2x), while others with less stock have raised prices by up to five times more.
Demand surge
AI's role in driving demand for computer memory
Chris Miller, author of "Chip War," said AI is the main factor driving demand for computer memory. He noted a surge in demand for memory chips, especially high-end High Bandwidth Memory that AI requires. This has led to higher prices across different types of memory chips. Mike Howard from Tech Insights explained that cloud service providers are finalizing their memory requirements for 2026 and 2027, giving RAM manufacturers a clear picture of future demand.
Consumer impact
Price increases and potential impact on consumers
Howard said with demand clarity and supply constraints converging, suppliers have gradually increased prices, some aggressively. He warned that as a result of these price hikes, consumers may be forced to choose between paying more or settling for a less powerful device. This could lead to a reduction in consumer demand in 2026 if memory prices don't fall back.