- Demand from AI data centers is straining memory supply, leading to higher prices, analysts say.
- Budget smartphones could see the biggest price hikes, iPhones less
- Many PC makers expect prices to be 15-20% higher starting in the second half of 2026.
The semiconductor industry faced an unprecedented DRAM/NAND shortage in late 2025, and it could persist “through 2027,” driving prices of consumer and business laptops and mini-PCs higher thanks to demand from AI data centers, according to a new study from IDC.
The report does not detail specific forecasts, but “moderate” and “pessimistic” scenarios were found showing the smartphone market contracting by up to 5.2% in 2026, and up to 8.9% for PCs over the same period.
Not only is demand outpacing supply, but memory manufacturers are reallocating capacity to higher-margin AI data center memory, leaving consumers facing shortages and higher costs.
Your next PC, tablet or smartphone could cost more
IDC notes that memory accounts for about 10 to 20 percent of the cost of building a smartphone. With costs rising, manufacturers will either have to increase their prices accordingly to skimp on upgrades.
Low-margin Android OEMs like Xiaomi, Oppo and Vivo are the most exposed and therefore more likely to pass costs on to consumers, while OEMs like Apple and Samsung are likely better insulated thanks to higher margins.
Still, IDC warns that flagship RAM upgrades could be delayed.
Price increases could be more amplified for PCs, where lack of memory is not the only factor influencing prices. Higher specifications to support Windows 11 following the deprecation of Windows 10 and the emergence of AI PCs also increase costs. Copilot+ PCs, for example, require at least 16GB of RAM, with high-end systems often doubling that figure.
Major vendors like Lenovo, Dell, HP, Acer and Asus have warned of 15-20% price hikes starting in the second half of 2026, making it a great time to upgrade.
“The severity and duration of the shortage will be determined by how quickly production capacity can increase and how effectively demand rebalances across segments,” noted Francisco Jeronimo, vice president of data and analytics for devices.
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