- AI data center demand is causing a strain on memory supply, leading to higher prices, analysts say
- Budget smartphones could see the biggest price hikes, iPhones less so
- Many PC makers are expecting 15-20% higher prices from H2 2026
The semiconductor industry faced an unprecedented DRAM/NAND shortage in late 2025, and it could persist “well into 2027” leading to price hikes across consumer and business laptops and mini PC devices thanks to AI data center demand, new IDC research has claimed.
The report did not detail specific forecasts, however “moderate” and “pessimistic” scenarios were uncovered showing a smartphone market contraction of up to 5.2% in 2026, and up to 8.9% for PCs in the same period.
Not only is demand outpacing supply, but memory manufacturers are reallocating capacity to higher-margin AI data center memory, leaving consumers with a shortage and higher costs.
Your next PC, tablet or smartphone could cost more
IDC notes memory accounts for around 10-20% of the cost to build a smartphone. With costs rising, manufacturers will either have to raise their prices accordingly to skimp on upgrades.
Low-margin Android OEMs like Xiaomi, Oppo and Vivo are most exposed, and so are more likely to pass costs to consumers, while the likes of Apple and Samsung are likely better insulated thanks to higher margins.
Still, IDC warns flagship RAM upgrades could be delayed.
Price hikes might be more amplified for PCs, where a shortage of memory isn’t the only factor influencing pricing. Higher specifications to support Windows 11 following Windows 10‘s deprecation, and the emergence of AI PCs, are also adding to the costs. Copilot+ PCs, for example, mandate at least 16GB of RAM, with higher-end systems often doubling that.
Major vendors like Lenovo, Dell, HP, Acer and Asus have warned of 15-20% price hikes from the second half of 2026, making now the perfect time to upgrade.
“The severity and duration of the shortage will be determined by how quickly production capacity can expand and how effectively demand rebalances across segments,” Data & Analytics VP for Devices, Francisco Jeronimo, noted.
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