AI demand is driving up prices for iPads, Nintendo Switches and other electronics, creating a ripple effect across the tech sector. Consumers planning to purchase new laptops or game consoles should brace themselves for higher costs. This surge in pricing is attributed to the AI boom, which has intensified demand for memory components essential for processing large volumes of data. As a result, chip manufacturers such as Micron, Samsung and SK Hynix face challenges meeting the dual demands of data centers and consumer electronics, leading to shortages and increased prices for products from Apple, Microsoft and Nintendo. The memory shortage has become so pronounced that it is described as the most severe hardware crisis in history by Asha Sharma, CEO of Microsoft’s Xbox division. She informed employees of this situation during an announcement regarding layoffs and restructuring. The impact of these price increases is particularly felt in gaming consoles, tablets and laptops. Devices such as the PlayStation 5, Nintendo Switch 2, Valve Steam Deck, Apple iPads and MacBook models have all seen notable price hikes in recent months. Microsoft has announced plans to increase Xbox prices in August, adding to the financial burden on consumers. Analysts predict that the shortage will persist until at least 2028 as memory producers work to expand their manufacturing capacity. Even after new facilities are operational, some experts believe prices may not revert to previous levels. According to the International Data Corporation (IDC), global PC shipments are forecasted to decrease by 11.3% in 2026, marking the sharpest annual decline in the smartphone industry. However, not all tech products are equally affected; devices like smartwatches and wireless earbuds, which require less memory, remain relatively stable in price. For larger purchases, the outlook is mixed. While price increases are expected to continue, the most dramatic rises may soon subside. Jitesh Ubrani, director of consumer devices research at the IDC, noted that the largest price spike has already occurred. Prices are anticipated to rise at a slower rate moving forward, though they will still increase. Experts recommend purchasing now to avoid further price hikes, as it could take at least a year for reduced memory component costs to affect consumer prices, according to Mike Howard, vice president of memory coverage at TechInsights. Consumers considering new purchases should also consider the timing of product releases. Many tech companies typically unveil new gadgets around the same time each year. For instance, Apple launches iPhones in September, iPads and Macs in March or October, while Samsung Galaxy phones are introduced in the first quarter. Google Pixel phones are generally released in August, and laptops from various brands are typically launched in January or June. Therefore, buyers might want to avoid paying inflated prices for devices if a new model is imminent. To mitigate the effects of current price trends, some consumers are turning to the secondhand market. Retailers such as Amazon, Apple and Samsung offer certified refurbished programs that provide discounted pre-owned products. These items undergo inspection and testing before resale, ensuring quality. Gadjo Sevilla, an analyst covering technology and AI for eMarketer, notes that refurbished gadgets often perform similarly to new ones. However, caution is advised when purchasing older models, as they may necessitate frequent upgrades. Refurbished programs typically feature newer devices, as retailers and carriers incentivize trades-in for discounts on latest models.
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