Rising demand for memory in AI data centres is causing prices for laptops, tablets, and gaming consoles to soar, threatening broader shifts in the consumer technology market despite stagnating sales and delayed upgrades.
The bill for consumer electronics is rising fast, and the common thread is memory. In June, Apple lifted prices across much of its Mac and iPad line-up, with the entry-level iPad climbing from $349 to $449 and the MacBook Air from $1,099 to $1,299, according to MacRumors. The company left the iPhone, Apple Watch and AirPods unchanged, but the pattern across the sector suggests the pressure is spreading well beyond Cupertino.
Gaming consoles have followed the same path. Windows Central reported that Microsoft increased Xbox Series S and Series X prices on August 1, with the standard Series X now at $799.99, up from $649.99. In Europe and the UK, Tom’s Hardware and PC Gamer reported even sharper adjustments, with Microsoft blaming higher component costs as the memory squeeze deepens. Sony has also raised PlayStation 5 prices this year, while Nintendo said memory costs were part of the reason for its own planned Switch 2 increase.
What links those changes is the surge in demand for memory chips and storage tied to AI data centers. As more capital flows into servers built for artificial intelligence, less capacity is available for the chips that go into laptops, tablets, phones and consoles. That makes the inflation hit feel especially sharp on lower-priced devices, where memory makes up a larger share of the total bill.
The broader market outlook is not encouraging. Reuters has previously reported on industry forecasts pointing to higher PC and smartphone prices through 2026, while IDC expects handset shipments to fall as buyers delay upgrades rather than absorb the increases. The result is a familiar cycle: companies raise prices to protect margins, shoppers hold on to older devices longer, and demand weakens just as the industry tries to pass on higher costs.
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