AI's Hidden Cost: Your Next Gadget Could Get Pricier

Get ready to dig a little deeper into your pockets for your next tech upgrade. The cost of essential computer components, particularly Random Access Memory (RAM), has skyrocketed, and experts warn this will inevitably lead to higher prices for everything from smartphones to laptops and smart TVs by 2026. At the heart of this looming price hike is RAM, a vital component that allows your devices to run smoothly by temporarily storing data. Without it, the gadget you're using right now simply wouldn't function. Its price has more than doubled since October 2025, with some manufacturers seeing costs jump by as much as 500% in a matter of months. So, what's driving this dramatic increase? The explosive growth of Artificial Intelligence (AI) is the main culprit. The massive data centres powering AI applications demand huge quantities of high-bandwidth memory, creating an unprecedented surge in demand. This has thrown the delicate balance of supply and demand into disarray, pushing prices upwards across the board for all types of memory chips. For device makers, these aren't minor fluctuations they can easily absorb. When component costs rise so significantly, the increases are typically passed on to the consumer. One computer builder noted that such substantial hikes will "force" manufacturers to make tough decisions about pricing. The impact on your wallet could be noticeable. A typical laptop, for instance, might see its manufacturing cost increase by £30-£37, while a smartphone could become around £24 more expensive to produce. These figures are expected to translate directly into higher retail prices for shoppers. Looking ahead, the market intelligence suggests that pricing and supply challenges will persist throughout 2026 and potentially into 2027. This means consumers will face a difficult choice: either pay a higher price for the performance they need, accept a less powerful device to save money, or simply hold onto their existing tech for a bit longer. Adding to the pressure, one of the biggest suppliers of RAM, Micron, announced in December it would stop selling its consumer-focused brand to concentrate solely on the booming AI market. While this removes a major player from the consumer space, it could also free up capacity for other manufacturers to meet consumer demand, potentially balancing out some of the impact. Ultimately, as AI continues its rapid expansion, the ripple effect on the cost of our everyday gadgets is becoming increasingly clear. --- Managing your business finances? TaxAce provides smart online accountancy services for UK businesses with flexible monthly plans. Image and reporting: https://www.bbc.co.uk | Read original article