Why everything from your phone to your PC may get pricier in 2026

The cost of a vast array of essential electronic devices, from the smartphones in our pockets to the personal computers on our desks and even critical medical equipment, is poised to increase significantly in 2026. This projected price hike stems from a dramatic surge in the cost of RAM (Random Access Memory), a fundamental component that has seen its price more than double since October 2025. The insatiable demand generated by the explosive growth of data centers powering artificial intelligence is the primary driver behind this market imbalance, forcing everyone to contend with higher prices. While manufacturers often absorb minor cost increases, substantial hikes like these are inevitably passed on to consumers.

Steve Mason, general manager of CyberPowerPC, a custom computer builder, painted a stark picture: "We are being quoted costs around 500% higher than they were only a couple of months ago." He anticipates a point where these escalating component costs will compel manufacturers to make difficult pricing decisions. "If it uses memory, or storage, there is the potential for price increases," Mason elaborated. "The manufacturers will have choices to make, as will consumers." RAM, the essential temporary storage for active data and code, is a critical element in virtually every computing device. Its absence would render even the simplest task, like reading this article, impossible.

Given the ubiquity of RAM, Danny Williams from rival computer builder PCSpecialist anticipates that price increases will persist "well into 2026." He noted that the market has been exceptionally strong throughout 2025, and if memory prices don’t stabilize, a reduction in consumer demand in 2026 is probable. Williams has observed a varied impact across different RAM manufacturers. Some vendors, possessing larger inventories, are exhibiting more modest price increases, perhaps ranging from 1.5x to 2x. However, other firms with limited stock have seen their prices escalate by "up to 5x."

AI Making Prices Rise

Chris Miller, the acclaimed author of "Chip War," identifies artificial intelligence as the "main factor" driving the surge in demand for computer memory. "There’s been a surge of demand for memory chips, driven above all by the high-end High Bandwidth Memory that AI requires," he explained. "This has led to higher prices across different types of memory chips." Miller further emphasized that prices "often fluctuate dramatically" based on "demand and supply," and currently, demand is experiencing an unprecedented surge.

Mike Howard from Tech Insights elaborated on this, explaining that the situation is compounded by cloud service providers finalizing their memory requirements for 2026 and 2027. This clarity on demand provides RAM manufacturers with a precise understanding of market needs. Howard stated that it’s "unmistakable" that supply "will not meet the levels that Amazon, Google, and other hyperscalers are planning for." He continued, "With both demand clarity and supply constraints converging, suppliers have steadily pushed prices upward, in some cases aggressively. Some suppliers have even paused issuing price quotes, a rare move that signals confidence that future prices will rise further." While some manufacturers may have anticipated this trend and built up their inventories, Howard characterized these as "outliers."

The impact on the cost of consumer electronics is substantial. In the PC market, memory typically constitutes 15 to 20 percent of the total cost. However, current pricing trends have pushed this figure towards 30 to 40 percent. "Margins in most consumer categories are not deep enough to absorb these increases," Howard warned.

The Bottom Line for 2026

As prices continue their upward trajectory, consumers will face a difficult choice: either pay more for the devices they need or settle for less powerful alternatives. "Most of the market intelligence we have received would suggest pricing and supply will be a challenge worldwide throughout 2026 into 2027," Mr. Mason stated.

Adding to the market dynamics, some major players have shifted their focus away from the consumer sector. Micron, a former leading seller of RAM, announced in December its decision to cease selling its Crucial brand to prioritize AI demand. "It removes one of the biggest players from the market," Mr. Mason observed. "On the one hand, that’s less choice for consumers – on the other hand, if their entire production ploughs into AI, it should free up capacity for the others to make more for consumers, so it may balance out."

Howard projects that a typical laptop with 16GB of RAM could see its manufacturing cost increase by $40 to $50 (£30 to £37) in 2026, a cost that "will likely be passed on to consumers." Similarly, smartphones are also expected to experience upward price pressure. "A typical smartphone could see its cost to build increase $30, which, again, will likely get passed on directly to consumers."

Williams suggested another potential outcome: consumers might be compelled to "make do with old tech for a little longer." He emphasized that computers have become a commodity, an everyday necessity in the modern world. With the escalating memory prices, consumers will need to weigh the decision of paying a premium for the performance they require against accepting a compromise in a lower-performing device.