A combination of high inflation and a weaker rupee has already pushed up everyday costs in India, and now rising prices of smartphones and laptops are adding further pressure on consumers. Devices from brands such as Apple iPhone, Samsung Galaxy series, Dell, and Asus are seeing higher price tags across segments.
Industry experts expect the situation to worsen in the second half of the year, with prices of smartphones, laptops, gaming consoles, external storage, and televisions likely to increase further.
The key reason behind the surge is the global shift toward artificial intelligence infrastructure. As companies invest heavily in AI data centres and services like ChatGPT, Claude, and Gemini, demand for memory chips and related components has risen sharply. This has reduced the supply available for consumer electronics such as smartphones, laptops, and TVs.
Major memory chip makers such as Samsung, SK Hynix, and Micron are increasingly prioritising high-margin AI and data centre contracts, further tightening supply for consumer devices.
Random Access Memory (RAM), a critical component in all electronic devices, plays a central role in system performance by enabling fast data access between the CPU and operating system. It is also widely used in AI data centres to process large-scale workloads.
Tech leaders have acknowledged the impact. Apple CEO Tim Cook said memory costs are expected to significantly affect the business, noting ongoing pressure from rising component prices despite long-term supplier agreements.
Meanwhile, Samsung reported record quarterly profits driven by a sharp surge in chip income and warned that supply shortages are expected to worsen through 2027. SK Hynix also reported strong growth, while Texas Instruments saw its highest earnings in decades due to rising data centre demand.
Industry data suggests data centres could account for around 70% of global memory chip usage by 2026. Analysts also warn that RAM shortages, first flagged in late 2024, may continue until 2028.
As a result, companies are passing rising costs to consumers. Apple has increased prices of iPhones and Macs in India, while Samsung has raised prices across its Galaxy lineup. Brands including OnePlus, Xiaomi, Realme, Motorola, Dell, and Asus have also increased prices across various models. Gaming consoles such as PlayStation and Nintendo Switch 2 are also expected to face price hikes due to higher memory costs.
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