Tech prices have spiked up to 50 per cent. AI is to blame
Tech prices have risen significantly, with some brands experiencing increases of up to 50 percent over the past 18 months. This surge is attributed to a shift in production by major semiconductor manufacturers and global foundries towards enterprise AI servers and data centers, leading to a shortage of components for consumer electronics. As a result, the supply of consumer devices has decreased, causing wholesale prices to rise and affecting both retailers and consumers. Retailer JB Hi-Fi reported a decline in sales momentum, citing supplier price hikes and inventory shortages. The company has had to reduce prices to maintain sales volume, resulting in lower profitability. Analysts suggest that the situation reflects broader challenges in the Australian discretionary retail sector.
Tech prices have surged by as much as 50 per cent, with artificial intelligence identified as a key driver of the increase. Consumers are reducing their spending on new technology as the cost of laptops, computers, smartphones, and gaming devices continues to climb. Some brands have seen price hikes of up to 50 per cent, according to reports. Over the past 18 months, major semiconductor manufacturers and global foundries have shifted production capacity toward enterprise AI servers and data centres, creating ripple effects throughout the supply chain. This shift has led to a shortage of essential components for consumer technology, resulting in reduced device supplies and rising wholesale prices, which have translated into increased costs for end users and squeezed margins for tech retailers. Retailers are responding by concentrating their promotional efforts around major sales events, according to JB Hi-Fi. As prices rise, customers are delaying purchases until these events, where high-margin items, such as refurbished phones or mid-range models priced at premium levels, may offer steep discounts. On Monday, shares in JB Hi-Fi dropped by 11.9 per cent following concerns about slowing sales momentum linked to the AI-driven price increases and supply issues. Despite posting record annual sales of $11.1 billion and a 6 per cent increase in net profit to $489.9 million, the company faces a difficult end to its fiscal year, citing supplier price rises and stock shortages in the technology category. JB Hi-Fi noted a noticeable decline in sales momentum during the fourth quarter, attributing it to supplier price increases and stock availability problems, along with broader economic challenges in the technology sector. To maintain sales volume, the company has resorted to slashing prices at the register, leading to a reduction in gross margins by 25 basis points in the second half of the year to 21.93 per cent. According to eToro analyst Josh Gilbert, investors are focusing on the four weeks of July, which have shown concerning trends. He stated that JB Hi-Fi's struggles could impact the broader Australian discretionary retail sector, given its role as a bellwether. During an investor call, JB Hi-Fi CEO Nick Wells highlighted the dual challenge of wholesale price increases of up to 50 per cent and supply difficulties, which have limited the extent of promotional activities supported by manufacturers. These factors have prompted consumers to delay discretionary spending until major promotional periods such as Black Friday, Boxing Day, and end-of-financial-year sales. July, however, lacks such events, contributing to the current sales slump. MST Marquee analyst Craig Woolford predicted that the slowdown in sales might intensify in the December 2026 quarter, noting that the entire electronics retail sector is grappling with similar challenges. Supply chain constraints caused by the global AI expansion are anticipated to last at least another 12 to 18 months, as silicon foundries remain fully booked by AI firms. Even major tech companies like Apple are affected, with rumors suggesting that only select iPhone 18 models will be available this year, while others are postponed to 2027. Meanwhile, Canva, a prominent design platform based in Sydney, has revised its internal valuation downward by nearly $10 billion, bringing it to $43.9 billion, a significant drop from its previous valuation of $53.9 billion. This adjustment follows an independent assessment and comes amid growing concerns that AI technologies could undermine the very platforms they were intended to enhance. Canva's largest Australian investor, Blackbird Ventures, has also adjusted its valuation of the company to $49.5 billion, reflecting a decrease from the $53.9 billion valuation established through a share sale a year prior. Canva's decision to lower its valuation is partly influenced by fears that AI could replace many of its services, particularly since anyone capable of crafting a simple prompt can now request a chatbot to create posters or pitch decks, tasks central to Canva's operations. Investors have already reacted negatively to other companies facing similar threats, with Adobe experiencing a 23 per cent decline in value over 12 months and HubSpot seeing a 45 per cent drop. Figma, which had a successful initial public offering a year ago, has lost about 68 per cent of its value. Canva itself has seen a weakening business trend, with its projected revenue growth for the year now at 20 per cent, down from an earlier forecast of 30 per cent. In contrast, the company achieved 38 per cent growth in 2025 and 45 per cent in the preceding year. Monthly active users dipped below 208 million in early August, showing little change compared to the same period last year, a factor Canva attributes to northern hemisphere school holidays and a user base skewed toward educational institutions. Despite these challenges, Canva maintains that it is positioning itself as an AI company that coincidentally provides design tools. The company has acquired several AI startups, developed its own design model, and claims to have significantly reduced the cost of delivering AI products. Canva co-founder and COO Cliff Obrecht emphasized the company's commitment to long-term vision, stating that being private allows for strategic investments beyond immediate quarterly goals. Blackbird partner Rick Baker echoed this sentiment, expressing confidence in Canva's approach to leveraging AI effectively in the future.
Go to the primary sources (1)
The official sources this coverage is built on. Read them directly to bypass framing.
Canva, Australia's largest privately owned tech company, has reduced its internal valuation by $10 billion to $43.9 billion, marking a significant drop from its previous valuation. This adjustment comes amid concerns that AI tools could undermine Canva's core business by allowing users to create designs through prompts rather than using the platform directly. The change affects employee stock grants and reflects broader market trends where similar tech firms like Adobe and Figma have seen substantial declines. Canva reported weaker-than-expected revenue growth projections and noted a slight decline in monthly active users during the summer period.
Bias read (Center): The article presents factual developments regarding Canva's financial adjustments and market challenges without overtly favoring any political ideology. While it discusses the impact of AI on the tech sector, it does not frame the issue in a politically charged manner. The focus remains on economic,
Why factuality (85): The article reports on Canva's valuation reduction based on multiple sources including internal assessments and updates to Blackbird Ventures' valuation. The figures are consistent with the cross-source consensus and provide specific details about the impact on employees and the broader implications
Why objectivity (80): The tone remains professional and informative, focusing on the facts of the valuation change and its implications. While the article acknowledges the 'sobering' nature of the markdown, it does not take a clearly biased stance, maintaining a balanced perspective throughout.
The AgeIndependentCenterFactual 85Objective 808/14/2026
Canva, Australia's largest privately owned tech company, has reduced its internal valuation by $10 billion to $43.9 billion, marking a significant drop from its previous valuation. This adjustment comes amid concerns that AI tools could undermine Canva's core business by allowing users to create designs through prompts rather than using the platform directly. The change affects employee stock grants and reflects broader market trends where similar tech firms like Adobe and Figma have seen substantial declines. Canva reported weaker-than-expected revenue growth projections and noted a slight decline in monthly active users during the summer period.
Bias read (Center): The article presents factual developments regarding Canva's financial adjustments and market challenges without overtly favoring any political ideology. While it discusses the impact of AI on the tech sector, it does not frame the issue in a politically charged manner. The focus remains on economic,
Why factuality (85): This article mirrors the content of the first, providing the same valuation figures and context. The information is consistent with the first article and aligns with the cross-source consensus. The lack of additional unique data doesn't detract from the factual accuracy of the reported events.
Why objectivity (80): Similar to the first article, the tone remains neutral and focused on presenting the facts. The language used to describe the situation is consistent and does not introduce subjective bias, though it uses the term 'sobering' which may slightly lean towards a cautionary tone.
Tech prices in Australia have surged up to 50 percent due to a shift in semiconductor manufacturing towards AI infrastructure, leading to component shortages and supply chain disruptions. Major retailers like JB Hi-Fi report declining sales momentum as consumers delay purchases and seek promotions, resulting in a 11.9 percent drop in the company's share price. Despite record annual sales of $11.1 billion and a 6 percent increase in net profit, JB Hi-Fi faces challenges with inventory shortages and reduced gross margins. Analysts suggest the situation reflects broader macroeconomic pressures and concerns over sustained demand in the technology sector.
Bias read (Center): The article presents a factual analysis of economic trends driven by technological shifts and market forces, without overt ideological slant. It reports on corporate financial performance and industry-wide supply chain issues without taking a clear partisan stance. The framing remains neutral, based
Why factuality (85): This article mirrors the first in content and structure, presenting the same causal chain between AI demand and rising tech prices. It includes identical statistics about price increases and mentions JB Hi-Fi's financial performance. Since both articles are from different sources but report the same
Why objectivity (75): Like the first article, this piece maintains a similar tone, using terms like 'extreme knock-on effects' and attributing the slowdown in sales to external factors. While it remains consistent with the first article, it lacks any explicit acknowledgment of alternative viewpoints or potential countera
The AgeIndependentCenterFactual 85Objective 758/17/2026
Tech prices have risen significantly, with some brands experiencing increases of up to 50 percent over the past 18 months. This surge is attributed to a shift in production by major semiconductor manufacturers and global foundries towards enterprise AI servers and data centers, leading to a shortage of components for consumer electronics. As a result, the supply of consumer devices has decreased, causing wholesale prices to rise and affecting both retailers and consumers. Retailer JB Hi-Fi reported a decline in sales momentum, citing supplier price hikes and inventory shortages. The company has had to reduce prices to maintain sales volume, resulting in lower profitability. Analysts suggest that the situation reflects broader challenges in the Australian discretionary retail sector.
Bias read (Center): The article discusses economic impacts related to technology pricing and supply chain issues without taking a clear stance on political matters. It focuses on market dynamics and corporate responses rather than political positions or policies.
Why factuality (85): The article cites specific percentage increases in tech prices (up to 50%) and attributes them to semiconductor manufacturers shifting production to AI servers and data centers. This aligns with the cross-source consensus from The Sydney Morning Herald, which presents the same cause-effect relations
Why objectivity (75): The article presents the information in a straightforward manner but uses phrases like 'extreme knock-on effects' and 'inevitably pushing up wholesale prices,' which carry a somewhat deterministic tone. It also frames the situation as a challenge for retailers and consumers, which could be seen as s
How each side covered it
The same event, grouped by the political lean of the outlets covering it.
progressive
center
conservative
★
How each side covered it
Support independent, bias-aware news and unlock the social pulse, community voting, and every other Supporter feature.
Australia
