Consumers around the world may soon notice a significant rise in the cost of their next smartphone or personal computer, a development closely tied to a deepening global shortage of memory chips. According to new data from the International Data Corporation (IDC), this deficit in dynamic random-access memory (RAM) and storage components is not a short-term issue—it is projected to persist well into the year 2027. The research firm’s latest analysis warns that this situation effectively signals the conclusion, at least for the foreseeable future, of a lengthy period characterized by inexpensive and abundant memory and storage supplies.
Over the last several months, prices for RAM modules have surged dramatically, reflecting the growing imbalance between supply and demand. The chief reason for this escalation lies in shifting priorities among major memory producers—Micron, Samsung, and SK Hynix—who are redirecting increasing portions of their production capacity and technical resources toward artificial intelligence (AI) companies. These firms operate massive data centers that require colossal volumes of high-performance memory to process and store large datasets, train complex machine learning models, and support generative AI applications. As a result, the average consumer market for devices such as desktop PCs, gaming rigs, and smartphones has been pushed to the back of the supply line. PC enthusiasts and gamers upgrading their systems were among the first to feel the effects of these shortages, but the impact is now spreading across nearly all categories of consumer electronics.
The IDC report emphasizes that the price of a smartphone is heavily influenced by the specific memory components it employs. When memory costs soar, manufacturers are left with limited options: they must either raise retail prices, reduce internal specifications such as RAM capacity or storage size, or attempt a compromise somewhere in between. This scenario is proving especially challenging for budget-oriented manufacturers such as Xiaomi, Oppo, Vivo, Honor, and Huawei. Over the years, these companies have fine-tuned their production strategies to achieve minimal costs, already optimizing component selection to maintain affordability while still meeting user expectations. With no cheaper substitutes readily available, IDC concludes that these firms “have no other option” but to pass the higher cost burden directly to consumers.
Indeed, evidence of this adjustment is already visible. Xiaomi and Honor have begun increasing the price tags on their tablet lines, and Xiaomi has issued public cautions that higher smartphone prices are imminent. In contrast, premium manufacturers like Samsung and Apple possess slightly greater flexibility. Because of their vast purchasing power and long-term procurement strategies, they are able to secure memory supply contracts well in advance—sometimes as far as 12 to 24 months. This foresight helps buffer them from the immediate volatility of the market. Still, even these giants appear likely to exercise restraint by limiting the amount of memory included in their flagship models. For instance, both Apple’s iPhone 17 Pro and Samsung’s Galaxy S25 Ultra currently feature 12GB of RAM, and it seems unlikely that these figures will increase significantly in the near future. Based on IDC’s projections, the average selling price of smartphones could climb by approximately 3 to 5 percent under moderate market conditions, with a potential increase of 6 to 8 percent if supply pressures worsen under a more pessimistic scenario.
Personal computers face similar headwinds. IDC describes this convergence of factors as a “perfect storm” for the PC industry, one that arrives at a particularly vulnerable moment. Microsoft’s forthcoming termination of support for Windows 10 is compelling businesses and consumers alike to transition to newer operating systems—and many are considering upgrading their hardware simultaneously. At the same time, the market is witnessing the rise of so-called “AI PCs,” machines designed to handle increasingly demanding artificial intelligence workloads that require substantial amounts of memory. Consequently, system builders and PC assemblers are encountering dual pressures: rising component prices and heightened performance demands.
Prominent original equipment manufacturers—among them Dell, HP, Acer, and Asus—have already confirmed that they will be adjusting their retail and wholesale prices upward. For products that integrate intensive AI functionality, such as Microsoft’s new Copilot Plus PCs, the dilemma becomes even sharper. These systems are designed with a minimum of 16GB of RAM to sustain the performance necessary for AI-driven operations, leaving little room for cost-cutting through specification reductions. If prices continue to climb, producers may face only two practical routes: either absorb narrower profit margins or raise end-user prices.
While IDC has decided not to revise its overall PC market forecast for 2026 at this stage, it acknowledges that average selling prices in the computer sector are likely to increase. The organization anticipates a 4 to 6 percent rise under moderate conditions, expanding to as much as 6 to 8 percent should the shortage deepen or persist beyond expectations. Taken together, the ongoing scarcity of memory components is reshaping the economics of technology manufacturing, marking a transition from years of declining hardware prices to an emerging period defined by resource constraints, strategic purchasing, and greater cost sensitivity across both consumer and enterprise segments.
Sourse: https://www.theverge.com/news/848199/ram-shortage-pc-phone-price-increases
