⚡ Quick Summary
- This article explains how AI companies’ demand for computer chips is driving up prices on everyday electronics like laptops, phones, and gaming components.
- It affects all consumers who need to buy or replace computers, smartphones, gaming equipment, or storage devices.
- Computer prices are expected to rise 17% and smartphone prices 13% this year, with budget PC models under $500 potentially disappearing altogether.
What Is This Situation?
AI companies are racing to build data centers and are buying up massive quantities of high-end memory chips and computer storage. According to technology research firm International Data Corporation (IDC), this unprecedented demand has shifted manufacturing capacity away from the kinds of gadgets regular consumers buy. The result is higher prices across consumer electronics, from laptops and smartphones to memory cards and gaming components. Research firm Gartner predicts computer prices will rise 17% this year and smartphone prices will increase by 13%.
🟢 In Plain Terms
Big tech companies building AI need the same computer parts that go into your phone and laptop. They’re buying so many that there aren’t enough left for regular people’s devices, which is making everything more expensive.
How Are Prices Being Affected?
Price increases are already showing up on popular products across multiple categories.
| Product | Price Increase |
|---|---|
| MacBook Pro M5 models (vs. M4 models from 2024) | $100 to $400 higher |
| Samsung S26 and S26+ phones (vs. last year’s models) | $100 higher each |
| Sony PS5 models (effective April 2, 2026) | $100 to $150 higher |
| 128GB MicroSD cards | Approximately doubled |
Budget models in the sub-$500 PC category may go away altogether, according to Gartner, because the high cost of components cuts profit margins too thin for device makers. Memory modules and high-capacity storage drives for custom gaming computers have gotten pricier and scarcer in recent months. IDC predicts this disruption and price inflation will be worse than the pandemic-related chip shortage several years ago.
🟢 In Plain Terms
If you’re shopping for a new laptop, phone, or gaming gear, expect to pay $100 to $400 more than similar products cost last year. The cheapest computers may stop being made entirely because companies can’t make money selling them anymore.
Some Affordable Options Still Exist
Despite the overall trend of rising prices, some manufacturers have released budget-friendly devices:
- MacBook Neo: Apple’s cheapest MacBook ever at $599
- iPhone 17e: Better specs and more starting storage for the same $599 starting price as last year’s iPhone 16e
- Google Pixel 10a: Solid speed and features for $499, or less when on sale
However, it’s uncertain whether these more affordable devices will stick around as the chip shortage continues.
🟢 In Plain Terms
A few good deals still exist if you act quickly, but there’s no guarantee these lower-priced options will stay available.
Strategies to Save Money
According to Rick Broida, a senior tech writer for Yahoo and author of the Deal Secrets newsletter, there are several ways to navigate these price increases:
- Extend the life of what you already have. If your phone’s battery is the only issue, many people don’t realize how easy it is to have it replaced. iPhone users can get it done at the Apple Store for around $100, depending on the model. Third-party repair shops can also replace batteries affordably. This can buy you another two to three years of use.
- Plan to pay more, or buy used. Set aside an extra $100 to $200 in your device budget. If you plan for a higher price, it may not hurt as much. You can also turn to the used or refurbished market—buy from a reputable reseller that offers some form of guarantee against issues.
- Check the specs and price history before buying. Glance at the specs before you buy a pricey gadget. In general, the more memory (RAM) and storage capacity (GBs or TBs) a laptop or phone has, the more expensive it might be. Use browser extension tools like Camelizer or Keepa to check the price history and avoid sticker shock.
🟢 In Plain Terms
Before buying new, see if you can fix what you have—a $100 battery replacement beats a $1,000 new phone. If you must buy new, budget extra and consider refurbished devices from trusted sellers.
Key Links
- Visit the official program website for applications and current information.
Disclaimer
This article is for informational purposes only and is not legal or financial advice. Product prices, availability, and market conditions change frequently. Always verify current prices and specifications directly with retailers before making purchasing decisions.
