RAM Prices Surge Due to AI Demand, Impacting Consumer Electronics Costs
RAM prices have more than doubled since October 2025, primarily driven by AI-focused demand from data centres, which has created a significant supply-demand imbalance. The need for high-bandwidth memory to support AI workloads has become the main factor pushing memory prices higher. Plans by cloud providers for 2026 and 2027 signal a continued tight supply situation.
The rising cost of RAM is expected to increase the prices of a wide range of devices, including phones, PCs, laptops, smart TVs, and medical devices, as manufacturers pass on higher memory costs to consumers. RAM now accounts for between 30% and 40% of a PC's cost, up from about 15% to 20%, which has squeezed the profit margins on consumer devices.
Some memory suppliers have paused issuing price quotes or have built up inventory, with some price increases reaching as much as five times the previous levels. Notably, Micron/Crucial has stopped selling its consumer RAM line to focus on meeting AI demand, reducing available options for consumers.
Estimated price impacts include an additional cost of approximately $40 to $50 (around £30 to £37) for a laptop equipped with 16GB of RAM in 2026, and about $30 more to build a smartphone. Consumers faced with higher prices may choose to pay more for improved performance or opt to keep older devices with lower performance.
Market forecasts indicate that pricing and supply challenges for RAM will persist through 2026 and into 2027.
