AI Memory Crunch May Push Up Prices of Phones, TVs and PCs in 2026

The global electronics industry is facing a new cost challenge as memory chips, once known for getting cheaper every year, are now becoming more expensive. Prices of key memory components such as DRAM and NAND are rising sharply as supplies tighten worldwide. The main reason behind this shift is the massive build-out of artificial intelligence infrastructure, which is absorbing large amounts of memory and leaving less available for consumer devices. As a result, smartphones, televisions, personal computers and even cars could become costlier in 2026.

Memory chip makers are increasingly diverting production capacity towards data centres and cloud companies that are investing heavily in AI systems. These systems require large volumes of advanced memory, especially server-grade DRAM and high-bandwidth memory, which offer higher margins to manufacturers. With this shift, memory that was earlier used mainly in consumer electronics is now being redirected to AI-focused customers.

Industry researchers expect memory prices to jump by 40–50 per cent in early 2026 after already rising significantly over the past year. This surge is putting pressure on device makers, especially in segments like smartphones, PCs and TVs, where profit margins are already thin. Memory has quickly become one of the most important cost factors in these products.

The impact is already visible in the television market. Industry executives say that production has moved away from older memory standards such as DDR3 and DDR4, which are commonly used in smart TVs, toward newer DDR5 memory required for servers and AI infrastructure. This shift has led to sharp price increases for consumer-grade memory, pushing up the overall cost of manufacturing TVs. As a result, retail prices are expected to rise steadily in the coming months.

The pressure is not limited to televisions. Smartphone and PC makers are also feeling the strain, with rising memory costs affecting product pricing, launch plans and margins. Some technology companies have acknowledged that memory has become one of the fastest-growing cost components in their devices. In the graphics and gaming space, supply constraints are also causing delays in certain chip launches due to limited access to memory.

Automakers are facing similar challenges, as modern vehicles rely heavily on semiconductors and memory for infotainment, safety systems and advanced driver assistance features. Higher memory prices and tighter supply add to the risk of cost increases and production disruptions across the automotive sector.

For consumers, this trend could mean higher prices or trade-offs in features. Brands may try to hold headline prices steady by offering devices with lower memory or smaller screen sizes. Some smartphone makers have already indicated that price increases in 2026 may be unavoidable due to rising component costs, while larger companies with stronger buying power may be better positioned to absorb some of the impact.

To manage the shortage, some PC and electronics brands are exploring alternative suppliers, including memory manufacturers in China. While qualifying new suppliers takes time and volumes may be limited, these efforts highlight how tight the global memory market has become.

Overall, the AI-driven memory crunch is reshaping the electronics supply chain, and unless capacity expands significantly, consumers are likely to feel the impact through higher prices and fewer choices in 2026.

Source: Business Standard