- Demand for AI data centers is causing a strain on memory supply, leading to higher prices, analysts say
- Budget smartphones could see the biggest price increases, iPhones the least
- Many PC makers expect 15-20% higher prices starting in the second half of 2026
The semiconductor industry faced an unprecedented DRAM/NAND shortage in late 2025, and it could persist “well into 2027,” leading to price increases in consumer and enterprise wearables and mini PCs thanks to demand from AI data centers, new research from IDC claims.
The report does not detail specific forecasts, however “moderate” and “pessimistic” scenarios are revealed that show a contraction of the smartphone market of up to 5.2% in 2026, and up to 8.9% for PCs in the same period.
Not only is demand outstripping supply, but memory manufacturers are reallocating capacity to higher-margin AI data center memory, leaving consumers with shortages and higher costs.
Your next PC, tablet or smartphone could cost more
IDC notes that memory represents about 10-20% of the cost of building a smartphone. With costs rising, manufacturers will have to increase their prices accordingly to save on upgrades.
Low-margin Android OEMs like Xiaomi, Oppo, and Vivo are more exposed and therefore more likely to pass costs on to consumers, while companies 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 further amplified for PCs, where memory shortages are not the only factor influencing prices. Higher specifications to support Windows 11 following the obsolescence of Windows 10 and the emergence of AI PCs are also driving up costs. Copilot+ PCs, for example, require at least 16GB of RAM, and high-end systems often double that amount.
Major vendors like Lenovo, Dell, HP, Acer and Asus have warned of price increases of 15 to 20% starting in the second half of 2026, so now is the perfect time to upgrade.
“The severity and duration of the shortage will be determined by how quickly production capacity can be expanded and how effectively demand is rebalanced across segments,” said Francisco Jerónimo, vice president of data devices and analytics.
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