AI by Patrik

Why AI Is Making Smartphones and Computers More Expensive

The AI boom has an unexpected side effect: smartphones and computers are getting more expensive. The reason lies in components found in almost every modern device — memory chips.

AI data centers require enormous amounts of high-performance memory. Manufacturers are therefore dedicating more production capacity to lucrative memory products for servers and AI systems. This leaves less capacity for conventional DRAM and NAND memory used in smartphones, laptops, and SSDs.

The effects are becoming noticeable:

Gartner expects average PC prices to rise by 17% and smartphone prices by 13% in 2026 compared with 2025.
TrendForce forecast further increases in DRAM and NAND contract prices for the third quarter of 2026.
Budget devices are particularly affected because memory represents a larger share of their manufacturing costs.
Manufacturers may respond with higher prices, smaller product ranges, or more conservative memory configurations.

For consumers, this could also change buying habits. Devices may be kept for longer, while used and refurbished smartphones and computers become more attractive.

AI is therefore changing more than software and the workplace. The global infrastructure required to power it is increasingly influencing the price of everyday electronics.