Why Your Next Phone and Laptop Cost More in 2026: The AI Memory Crunch

If you have priced a new laptop or phone lately and felt sticker shock, it is not your imagination — and the reason traces straight back to the AI boom. The same memory chips that power your devices are being vacuumed up by AI data centers, and that is reshaping what everyday electronics cost.
Here is what is driving the increases, how much more you can expect to pay in 2026, the sneaky way manufacturers are hiding it, and the practical moves that can save you money on your next device.

Why are phone and laptop prices going up in 2026?

Every computing device needs memory — RAM for short-term tasks and flash storage for your files. That memory is made by essentially three companies: Samsung, SK hynix, and Micron. In 2026, those companies are pouring capacity into the high-bandwidth memory (HBM) that AI accelerators require, because AI customers will buy as much as can be made at premium prices.
The problem is a supply tradeoff. As CNBC reported, making HBM is so memory-intensive that producing one bit of it means forgoing several bits of the conventional memory that phones and PCs use, and Micron has said it is essentially sold out for 2026. With demand from the AI data-center boom outrunning supply, the RAM and storage left for consumer devices has become scarce and expensive.

How much more expensive are devices getting?

The forecasts are stark. According to Gartner, combined DRAM and SSD prices could surge around 130% by the end of 2026, raising PC prices by roughly 17% and smartphone prices by roughly 13% compared with 2025. Gartner also expects device shipments to fall sharply as buyers hold on to what they have.
IDC reaches a similar conclusion, projecting average selling prices to climb several percentage points and replacement cycles to lengthen. You can already see it in finished products:

If you build or upgrade your own PC, the increase is even more visible. Industry price trackers reported that a common 32GB DDR5 desktop memory kit that sold for under $90 in early 2025 was fetching several hundred dollars by early 2026, and even older DDR4 kits roughly doubled or tripled. Console makers put hard numbers on it too: Nintendo raised the US price of the Switch 2 by $50 in 2026 and explicitly blamed higher memory costs, while Sony and Microsoft also lifted console prices during the year. When the same chips sit inside phones, laptops, consoles, and TVs alike, a shortage in one place shows up on every shelf.

What is “shrinkflation” in phones and laptops?

Because shoppers react badly to higher price tags, some manufacturers are keeping prices flat and quietly giving you less instead — the electronics version of shrinkflation. In practice, that can mean a laptop that looks identical to last year’s model but ships with 8GB of RAM instead of 16GB, or a dimmer screen. On phones, analysts have flagged downgraded camera modules, displays, and audio components on some models, and the most basic handsets returning to just 4GB of RAM.
The takeaway for buyers: do not judge a 2026 device by its price alone. Check the actual specs — RAM, storage, screen, and camera — against the model it replaces, because two phones or laptops at the same price may no longer be the same product.

Which devices are hit hardest?

The pain is not evenly spread. Budget and entry-level devices are squeezed most, because memory makes up a bigger share of a cheap device’s cost and there is little margin to absorb the increase. Premium phones and laptops are better insulated thanks to higher margins.
The clearest casualty is the cheap PC. Gartner expects the sub-$500 entry-level laptop segment to disappear by 2028 as memory costs make those thin-margin machines unviable, and it projects the wider rollout of AI PCs to slow because of pricing. If you shop at the affordable end, our guide to the best budget laptops for students is worth checking sooner rather than later, while that price tier still exists.

Should you buy now or wait?

This is the key question, and the honest answer is that waiting is unlikely to help in the near term. Memory makers including Samsung and SK hynix have warned the shortage could persist into 2027 and beyond, and new factories coming online in 2027–2028 will not ease supply immediately. There is one nuance: research firm TrendForce notes price increases are finally slowing in the second half of 2026 — not because supply improved, but because consumers have hit the ceiling of what they will pay.
So if you genuinely need a device this year, buying earlier rather than later generally means paying less and getting better specs before further downgrades. If you do not need one, the smarter play is often to extend the life of what you already own.

How can you save money on your next device?

A few practical moves cushion the impact:

• Consider last year’s model or refurbished. Year-over-year gains are usually small, and a prior-generation or certified-refurbished device can cost far less for nearly the same experience.
• Check the specs, not just the price. Confirm RAM and storage have not shrunk versus the model you are replacing, so you do not overpay for a quiet downgrade.
• Make your current device last longer. A slow laptop can often be revived — see our guide to making a laptop faster, or fixing a slow MacBook.
• Decide upgrade vs. keep deliberately. Before replacing a PC, check whether it can keep running current software — our guide on whether your PC can run Windows 12 helps.
• Buy RAM and SSDs sooner if you upgrade yourself. Component prices are volatile and elevated, so if a memory or storage upgrade is on your list, prices are unlikely to be lower later this year.

The bigger picture is that memory has quietly become the component that sets the price of nearly everything you buy — from a flagship phone to a budget laptop to a game console — and for now, the world’s AI data centers are at the front of the line. Being a careful, spec-aware shopper is the best defense until supply catches up later this decade.

FAQ

Why are laptop and phone prices going up in 2026?

AI data centers are consuming most of the world’s memory-chip manufacturing capacity. With only three major makers — Samsung, SK hynix, and Micron — prioritizing high-margin AI memory, the RAM and storage used in consumer devices has become scarce and expensive. Gartner projects roughly a 130% memory-cost surge by the end of 2026, feeding directly into device prices.

How much more will a new laptop or phone cost?

Estimates vary by source, but Gartner projects PC prices rising about 17% and smartphones about 13% in 2026 versus 2025, while IDC projects average selling prices climbing several percentage points. Budget and entry-level devices are affected most, and Gartner expects the sub-$500 laptop segment to disappear entirely by 2028.

What is electronics “shrinkflation”?

Shrinkflation is when a device keeps the same price but offers less — for example, a laptop with 8GB of RAM instead of 16GB, a dimmer screen, or a phone with a downgraded camera or display. Some manufacturers use it to hide rising memory costs, so it is important to compare specs, not just prices, when buying in 2026.

Should I buy a new device now or wait for prices to drop?

If you need a device this year, buying sooner generally means paying less and getting better specs before further downgrades, since suppliers say the shortage could last into 2027 and beyond. If you do not need one, extending the life of your current device is usually the smarter financial move right now.

Will memory prices come back down?

Not soon. Memory makers have warned the shortage may persist into 2027 or later, and new factories will not add meaningful supply until 2027–2028. Price increases are slowing in late 2026, but mainly because consumers have reached their affordability limit rather than because supply has recovered.