A growing demand for artificial intelligence infrastructure is quietly increasing the cost of everyday devices such as smartphones and laptops. Industry experts say the surge in AI development has driven up the price of key components, especially memory chips, forcing technology companies to raise device prices or reduce hardware specifications.
“Vendors are increasing prices primarily because memory costs have surged dramatically, in some cases rising 200–300 per cent in recent months. Most vendors operate on relatively tight hardware margins, particularly in the mid-range and entry segments. As a result, they are forced to pass part of these higher component costs on to consumers,” said Francisco Jeronimo, Vice President of Client Devices at International Data Corporation (IDC).
The rising demand comes from AI companies building massive data centres. These facilities require large amounts of high-performance memory to run advanced AI systems. As a result, chip supplies that were once used mainly for consumer devices are now being redirected toward AI infrastructure.
RAM, or Random Access Memory, is a critical component in all modern devices, including smartphones, laptops, tablets, gaming consoles, cars, and infotainment systems. While smartphone RAM typically ranges between 8GB and 16GB, AI data centres require significantly larger memory capacity. For example, Nvidia’s Rubin GPU uses up to 288GB of HBM4 memory in a single processor system.
The global RAM market is also highly concentrated. Samsung, SK Hynix, and Micron together control about 93 per cent of global memory production. As AI companies secure long-term supply agreements, consumer electronics manufacturers are facing tighter supply and higher costs.
Major smartphone brands have already started increasing prices. Samsung recently launched the Galaxy S26 series in India with higher price tags. The Galaxy S26 starts at Rs 87,999, the S26 Plus at Rs 1,19,999, and the S26 Ultra at Rs 1,39,999. In comparison, the Galaxy S25 series started at Rs 80,999, Rs 99,999, and Rs 1,29,999 respectively.
Price increases are also visible in mid-range smartphones. The Nothing Phone 4a now starts at Rs 31,999, while the 4a Pro costs Rs 39,999. Their predecessors launched at Rs 22,999 and Rs 27,999. Motorola has also raised the price of its Edge 70 to Rs 26,999, compared to Rs 22,999 for the earlier Edge 60.
Even Apple, which usually maintains stable pricing, increased the price of the iPhone 17e to Rs 64,900, about Rs 5,000 higher than the previous model.
Experts warn that the biggest impact will be felt in mid-range and budget smartphones priced between Rs 20,000 and Rs 50,000. Devices under $200 could rise to $150–$200 due to rising component costs. The RAM shortage could persist until 2027, as building new production capacity takes 2–3 years.
IDC predicts the global smartphone market could decline 13 per cent in 2026, while the PC market may shrink 11 per cent due to rising prices.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
