Walk into any electronics shop in 2026 and you may sense it even before the salesperson utters a word. Laptops cost much more than they did a few months ago. Computer accessories are following the same path.

Phones yet to arrive this year are also likely to carry minimal upgrades but steeper price tags than their predecessors. 

This is not a coincidence, rather the result of a major shortage of random access memory (RAM) chips. And this ongoing crisis is reshaping the technology market and raising prices for everyone.

At the core of the issue is a global shift in how memory is made, who it is made for, and why. 

For years, memory chips followed a predictable cycle: prices rose, then fell. Supply expanded, then slowed. Consumers benefited from steady improvements at lower cost. That pattern has now broken, thanks to the explosion of artificial intelligence, the workload of which has changed demand for RAM almost overnight.

Modern AI systems rely on enormous amounts of memory to train and run models. Data centres now consume far more memory per system than phones or personal computers ever did.

To meet this demand, manufacturers have prioritised high bandwidth memory, or HBM, which is stacked vertically and designed for extreme performance. It is also far more profitable than the memory used in consumer devices.

So, the newly emerged problem lies in capacity — the same factories and silicon wafers are used to produce all forms of dynamic RAM (DRAM). Every wafer devoted to HBM for an AI accelerator is one less wafer available for a laptop, a phone, or a gaming console.

The world's three dominant memory makers, Samsung, SK Hynix and Micron, have therefore redirected production towards enterprise and hyperscale customers, leaving the consumer market short.

The consequences of this shift is that DRAM prices surged through late 2025 and continue to rise in early 2026.

Analysts reported that standard DDR5 memory prices multiplied within months, while contract prices for manufacturers climbed by double digits in a single quarter. Some suppliers now warn that supply growth in 2026 will fall well below historical norms, even as demand continues to rise.

According to industry insiders, this imbalance is not temporary. They describe it as a structural shift rather than a short cycle. Memory makers are committing capital to products that deliver higher margins and longer contracts. Consumer memory, once the industry's backbone, is no longer the priority.

Some technologists argue that pressure may ease if more AI processing moves onto personal devices, reducing reliance on the cloud. Many others believe demand will only grow. What is clear is that consumers should not expect a quick return to the era of cheap, plentiful memory.

Micron, one of the top RAM manufacturers, closed its long running Crucial consumer memory brand after nearly three decades. The company stated plainly that AI driven growth made it more important to serve large enterprise customers than individual buyers.

For consumers, Micron's decision translates to reduced competition, which ultimately allows other manufacturers to increase the price.

Memory is a significant part of the bill of materials when it comes to manufacturing a device like a laptop or a smartphone. In mid range smartphones, for example, it can account for up to a fifth of total cost.

As prices rise, manufacturers will face hard choices between increasing the prices, or reducing specifications, or attempting a mix of both.

The long trend of affordable devices inheriting flagship features is going to slow down as well. Some phone makers are expected to freeze RAM upgrades in premium models, while lower cost devices may ship with less memory than consumers expect.

Analysts suggest that average selling prices will rise across the market, with the sharpest increases felt at the budget end.

The personal computer market is also facing a similar squeeze. Vendors including Lenovo, Dell and HP have signalled broad price increases as memory contracts reset.

Smaller manufacturers and local system builders are under particular pressure, while large brands with stronger supply agreements gain an advantage. Gamers and DIY-builders are likely to feel the impact first, as memory kits and graphics cards both become more expensive.

There is some hope on the horizon, but it is distant, to say the truth. Memory manufacturers plan to build new fabrication plants between 2026 and 2030, and research into three dimensional DRAM could eventually improve capacity.

For these projects to become a reality on a substantial scale, it will take years. Even optimistic forecasts suggest that supply will remain tight through at least 2027.

Some technologists argue that pressure may ease if more AI processing moves onto personal devices, reducing reliance on the cloud. Many others believe demand will only grow. What is clear is that consumers should not expect a quick return to the era of cheap, plentiful memory.

RAM Crisis / electronics / Technology