AI-led memory shortage threatens to make phones, TVs, PCs costlier in 2026

A global supply squeeze driven by AI servers is raising costs for phones, PCs and TVs, while some brands consider Chinese memory makers as a fallback

For years, memory was one of the few components in consumer electronics that reliably got cheaper. That pattern has now reversed. Prices of Dynamic Random Access Memory (DRAM) and NAND are climbing sharply, supplies are tightening, and the impact is starting to show up across smartphones, PCs, televisions and even automobiles. The immediate trigger is the global rush to build AI infrastructure, which is pulling memory supply away from consumer devices and reshaping how chipmakers allocate capacity.

What’s happening now?

Global memory chip supply, especially DRAM and NAND used in phones, laptops and PCs, is under unusually strong pressure as manufacturers redirect capacity toward AI infrastructure. Memory that once flowed primarily into consumer electronics is increasingly being absorbed by data centres, cloud providers and server makers building out AI systems.

 

 

According to a Reuters report citing Counterpoint Research, memory prices are expected to jump by around 40–50 per cent in the first quarter after already rising sharply last year, pushing up costs for device makers across categories. Reuters noted that the surge is being driven by tighter supply and stronger demand from the server and AI segments, leaving consumer electronics brands facing higher bills of materials.

For companies that operate on thin margins, especially in PCs, smartphones and TVs, memory has quickly shifted from being a background component to one of the biggest cost variables in their products.

The AI demand driver

At the centre of this shift is the rapid expansion of AI infrastructure. Memory makers are increasingly prioritising high-bandwidth memory (HBM) and server-grade DRAM contracts tied to AI workloads, including data centres, cloud platforms and GPU-based systems. HBM is more complex and expensive to produce, but it also commands much higher margins, making it far more attractive for suppliers than conventional consumer-grade memory.

 

This has changed how the industry allocates supply. Tom’s Hardware reported that the three dominant memory manufacturers — Samsung, SK Hynix and Micron — have begun tightening order controls and prioritising large customers, sometimes even policing orders to prevent stockpiling. According to that report, supply relationships and customer profiles are increasingly determining who gets memory first during the crunch, with AI and server customers at the front of the queue.

 

The practical effect is that less capacity is available for the kinds of DRAM and NAND used in everyday consumer devices, even as production shifts toward newer, server-focused technologies.

Consumer electronics under strain

The impact of the memory crunch is already spilling into consumer electronics, particularly in categories like smart TVs that depend heavily on stable component pricing.

 

Avneet Singh Marwah, CEO of Super Plastronics Private Limited (SPPL), the brand licensee for Blaupunkt and Kodak in India, said memory prices have surged because supply is being redirected toward newer standards used in servers and AI infrastructure.

“In smart TVs, memory used is DDR3 and DDR4, but due to huge demand from AI, memory is being diverted to servers, which use DDR5. Because of this, production across memory suppliers has shifted largely to DDR5. As a result, memory prices have increased by more than 300–400 per cent,” Marwah said.

 

According to him, the cost pressure is already feeding through to retail prices. Marwah said television prices are expected to rise by around 7–10 per cent on a month-on-month basis, and that the situation is unlikely to normalise in the near term. “As per forecasts and limited sources, the situation is not expected to normalise in Q2 or Q3, with prices continuing to rise during this period,” he said.

 

He added that the surge in component costs has effectively cancelled out earlier tax relief. India’s reduction of GST on televisions from 28 per cent to 18 per cent had helped ease prices, but rising input costs and higher metal prices have wiped out those gains. “All the benefits provided by the government last year by reducing GST from 28 per cent to 18 per cent have effectively been wiped out. TVs in the coming months are expected to become even more expensive than they were during the pre-28 per cent GST period,” he said.

 

The same pressure is visible in other parts of the industry. Reuters reported in January that surging memory chip prices are dimming the outlook for consumer electronics makers, with companies facing higher costs and tighter supply. Apple has also flagged rising memory costs as a pressure point, in its latest earnings call. Analyst Ming-Chi Kuo said that memory price increases are adding to Apple’s component costs and weighing on margins.

 

In the PC and graphics segment, memory constraints are also starting to affect product timelines. Reports have indicated that Nvidia has had to delay at least one gaming-related chip due to memory supply issues. Meanwhile, the impact is not limited to gadgets. As Pocket-lint has noted in its reporting on the RAM shortage, modern cars rely heavily on semiconductors and memory, and tighter supply in the chip ecosystem is now feeding into higher costs and production risks for automakers as well.

What this means for consumers

Some brands have already signalled that higher component costs will be passed on. UK-based smartphone maker Nothing has said it plans to raise the prices of its phones in 2026, citing rising memory costs driven by demand from AI data centres. The company has argued that memory has become one of the biggest cost drivers in smartphones after years of getting cheaper.

 

However, not all major players are expected to respond in the same way. Kuo said that Apple’s current plan for its second-half 2026 iPhone 18 lineup is to avoid raising prices as much as possible, and to at least keep the starting price flat, calling that approach helpful from a marketing perspective. Kuo has also cautioned that Apple’s position is not necessarily representative of the wider smartphone market, given the company’s scale and leverage. He noted that iPhone DRAM and NAND flash consumption accounts for around 20–25 per cent of the global smartphone memory market, giving Apple far stronger bargaining power with suppliers than most other brands.

 

In categories like televisions, the impact may be less about whether people buy a device at all and more about what they choose within a given budget. In his statement, Marwah said the recent surge in costs may not immediately reduce overall sales volumes, but it is likely to change buying behaviour.

 

“Consumers who earlier wanted to buy a 65-inch TV will now opt for 55 inches, and those looking at 55 inches will shift to 43 or 50 inches,” he said, adding that the recent shift toward larger screen sizes could reverse if prices continue to climb. Entry-level models, he warned, are likely to be hit the hardest as prices rise in a highly price-sensitive segment.

Is China stepping in?

With traditional suppliers focused on higher-margin AI and server customers, some consumer electronics and PC makers are starting to look for alternatives. Reuters, citing Nikkei Asia, reported that PC brands such as HP, Dell, Acer and Asus are evaluating memory from Chinese manufacturers like ChangXin Memory Technologies (CXMT) as a partial way to navigate the current supply crunch.

 

The report noted that this would mark a significant shift for some of these companies, which have traditionally relied on Micron, Samsung and SK Hynix. While qualifying new suppliers takes time and much of China’s output is likely to be absorbed by its domestic market, the move underlines how tight the global memory market has become.