AI Memory Crunch Lifts Gadget Prices, With Shortage Seen Lasting Until 2028
Updated
Updated · CNN · Jul 13
AI Memory Crunch Lifts Gadget Prices, With Shortage Seen Lasting Until 2028
3 articles · Updated · CNN · Jul 13
Summary
Memory shortages tied to AI data-center demand are pushing up prices for iPads, MacBooks, PlayStation 5, Switch 2 and Steam Deck, with Microsoft set to raise Xbox prices in August.
Data centers are absorbing scarce memory chips faster than Micron, Samsung and SK Hynix can expand output, leaving too little supply for consumer devices.
IDC expects the squeeze to hit demand: global PC shipments are forecast to fall 11.3% in 2026, while smartphones face their steepest annual decline.
Analysts say the biggest price jump may already have happened, but further increases are likely at a slower pace and any drop in component costs could take at least a year to reach shoppers.
New fabs are not expected to ease the shortage before at least 2028, and some analysts do not expect prices to return to pre-crunch levels.
With AI driving up tech prices, is the era of the affordable smartphone and PC gone for good?
Is the high-speed memory fueling the AI boom an 'engineering mistake' that's doomed to fail?
Global Gadget Prices Soar as AI Data Centers Consume 70% of Memory Supply: Market Faces Structural Reset Through 2027
Overview
The consumer electronics market is facing a major crisis as of mid-2026, with gadget prices soaring and new device sales shrinking. This is mainly due to a sharp rise—up to 90%—in memory component costs since late 2025, which has pushed up prices for everything from smartphones to gaming consoles. The shortage is most severe for eMMC and UFS memory, as manufacturers shift production to more profitable enterprise SSDs. At the same time, strong demand for high-speed memory in AI-powered flagship devices and a modest recovery in automotive and industrial sectors are making the supply gap even worse, driving prices higher for consumers.