23rd October 2026
The worldwide race to develop artificial intelligence is creating an unexpected problem for ordinary consumers. The cost of computer memory chips is rising sharply, putting pressure on the prices of laptops, smartphones, storage devices and other technology products.
Much of the attention surrounding AI has focused on its potential to transform business, improve productivity and create new industries. Less attention has been paid to the physical resources needed to make it work. Memory chips are becoming one of the most important, and increasingly expensive, components in that race.
Why memory chips are becoming more expensive
There are two main types of memory involved.
DRAM provides the temporary working memory that computers and smartphones need to run applications. NAND flash is used for permanent storage in devices such as solid-state drives, phones and memory cards.
Both are under pressure from rising demand, particularly from companies building enormous data centres to support AI services.
These facilities require substantial quantities of high-performance memory. Manufacturers are responding to the demand, but production capacity is not unlimited. Investment and manufacturing resources are increasingly being directed towards products that offer higher returns, leaving less flexibility in the supply of memory used in ordinary consumer electronics.
Market research firm TrendForce forecast further increases in wholesale memory prices during the final quarter of 2026. Its September estimates suggested conventional DRAM contract prices could rise by 10–15%, while NAND flash prices could increase by 15–20%.
These are wholesale forecasts rather than guaranteed increases in shop prices, but they indicate the scale of the pressure facing manufacturers.
Computers and phones could become more expensive
The effects are already being felt across the technology industry.
Computer manufacturers must decide whether to absorb higher component costs, increase prices or offer less memory and storage in their products. Consumers could therefore face more expensive machines, fewer attractive budget options or specifications that are less generous than those available previously.
Gaming computers may also become more costly, while people planning to upgrade their existing machines could find that buying additional memory or a larger storage drive is no longer the bargain it once was.
Smartphone manufacturers face a similar challenge. Memory is an important component of modern phones, and higher costs could make it harder to maintain prices, particularly in the more competitive budget market.
The effect will vary between manufacturers and models. Companies with existing stocks, long-term supply agreements or stronger purchasing power may be better placed to manage the increases. Not every product will become more expensive immediately.
Nevertheless, the direction of travel is concerning for consumers who have become accustomed to increasingly powerful technology at relatively affordable prices.
A warning for the wider technology market
The pressure extends beyond individual purchases. Technology research firm Gartner forecast in February that average PC prices could be 17% higher and smartphone prices 13% higher by the end of 2026 compared with 2025. These were forecasts, not confirmed increases across every product.
Higher prices can change consumer behaviour. Households may keep their existing phones and computers for longer, while businesses may postpone replacement programmes.
That might seem a sensible response to rising costs, but it has consequences. Older equipment can become slower, less reliable and more difficult to maintain. Organisations that delay upgrades for too long may also face security and compatibility problems.
The industry faces a difficult balance. Manufacturers need to recover rising costs, but charging too much risks discouraging the very customers they depend upon.
Could the shortage last into 2027?
There is no guarantee that prices will quickly return to their previous levels.
Building new semiconductor manufacturing capacity requires substantial investment and considerable time. Even when factories expand, the additional output must be suitable for the particular types of memory in short supply.
Eventually, higher prices should encourage more investment, while weaker consumer demand may help restore the balance. But these adjustments do not happen overnight.
The outlook will depend heavily on the continued expansion of AI infrastructure, manufacturers' production decisions and whether demand for conventional computers and smartphones weakens in response to higher prices.
The hidden cost of the AI revolution
There is an irony here. AI is being promoted as a way to reduce costs, improve efficiency and make businesses more productive. Yet the infrastructure required to deliver those benefits is helping to make some everyday technology more expensive.
The gains may ultimately outweigh the costs, but they will not necessarily be shared evenly. Large technology companies can commit billions of pounds to computing infrastructure. Households and small businesses have much less room to absorb higher prices for essential equipment.
For consumers considering a new computer or phone, the sensible approach is to compare the specifications and prices of actual models rather than assume every product will rise by the same amount. Anyone with a perfectly serviceable device may decide to postpone an upgrade, but there is little reason to panic-buy.
The bigger question is whether the AI boom will continue to absorb so much manufacturing capacity that ordinary consumers are left paying more for the technology they use every day.
The revolution may be taking place in data centres, but its costs could increasingly be felt on the high street and in household budgets.