Will Your Phone and PC Prices Skyrocket in 2026?

The rising cost of RAM (Random Access Memory), a crucial component in many electronic devices, is expected to drive up prices for consumers significantly by 2026. This surge is primarily due to the explosive growth in data centres supporting artificial intelligence (AI), leading to a supply and demand imbalance that manufacturers cannot absorb indefinitely. As a result, consumers may soon face higher prices for everything from smartphones to computers.

Last updated: 03 October 2023 (BST)

What’s happening now

The cost of RAM has more than doubled since October 2025, with some manufacturers reporting increases of up to 500% for specific types. This dramatic rise is largely attributed to increased demand from AI-driven applications and cloud computing services, which require substantial memory resources. As the tech industry gears up for 2026, the ramifications of these cost increases are becoming more apparent. Many manufacturers are already feeling the pressure to make tough decisions regarding pricing, which will ultimately affect consumers' wallets.

Key takeaways

RAM prices have soared, doubling since October 2025.
AI growth is driving unprecedented demand for memory components.
Manufacturers may pass these cost increases onto consumers by 2026.
Some firms are prioritising AI production over consumer RAM products.
Consumers might have to choose between paying more for better devices or settling for less capable technology.

Timeline: how we got here

Understanding the timeline of RAM price fluctuations is essential to grasping the current situation:

October 2025: RAM prices begin to sharply increase, attributed to growing demand from AI data centres.
December 2025: Micron announces it will cease selling its Crucial brand to focus on AI, reducing consumer options.
January 2026: Reports emerge of RAM prices being quoted at levels 500% higher than just months prior.
Mid-2026: Experts predict manufacturers will have to decide on price adjustments to remain profitable.

What’s new vs what’s known

New today/this week

The most recent updates indicate that memory manufacturers are experiencing significant price volatility. Mike Howard from Tech Insights notes that as cloud service providers clarify their memory requirements for 2026 and beyond, suppliers have raised prices aggressively. Some manufacturers have even paused issuing price quotes, signalling confidence that costs will continue to rise.

What was already established

Prior to these developments, it was already known that the demand for computer memory was increasing due to AI needs. The implications of this for consumer electronics pricing were anticipated based on trends in demand and supply. Manufacturers had previously absorbed some cost increases, but large jumps in component pricing were expected to be passed on to consumers.

Impact for the UK

Consumers and households

With the cost of RAM projected to rise further, UK consumers may soon find themselves paying more for essential tech products. Devices like laptops and smartphones, which are crucial in everyday life, are likely to experience price hikes. A typical laptop's manufacturing cost could increase by £30 to £37, while smartphones may see similar increases, forcing consumers to reconsider their purchasing decisions.

Businesses and jobs

The impact on businesses could be significant, particularly for those involved in manufacturing and retailing technology. Companies may need to adjust their pricing strategies or rethink their product lines in light of rising component costs. The tech sector could see shifts in hiring practices as firms adapt to a changing market where cost pressures may squeeze margins.

Policy and regulation

As pricing pressures mount, UK policymakers may need to examine the implications for consumer protection. Discussions around regulating tech prices or incentivising domestic production of essential components might gain traction as the market evolves. Additionally, consultations may arise regarding how to support consumers facing increased costs for everyday technology.

Numbers that matter

500%: The increase in some RAM prices since late 2025.
30% to 40%: The proportion of total PC costs attributed to memory due to rising prices.
£30 to £37: The estimated increase in manufacturing costs for a typical laptop due to RAM price hikes.
£30: The anticipated cost increase for manufacturing a typical smartphone.
15% to 20%: The typical share of memory costs in overall PC manufacturing expenses before the recent surge.

Definitions and jargon buster

RAM (Random Access Memory): A type of computer memory that stores data temporarily for quick access while a device is in use.
AI (Artificial Intelligence): The simulation of human intelligence processes by machines, especially computer systems.
Cloud service providers: Companies that offer computing services over the internet, including data storage, processing, and management.

How to think about the next steps

Near term (0–4 weeks)

In the immediate future, consumers should prepare for price increases on a range of technology products. Monitoring announcements from manufacturers will be crucial to understanding the extent of these changes.

Medium term (1–6 months)

As more data comes to light regarding RAM pricing and consumer demand, the market may settle into a new equilibrium. Consumers might need to weigh the benefits of purchasing new technology against the costs.

Signals to watch

Manufacturer price announcements and changes in RAM pricing.
Trends in consumer demand for tech products amidst rising prices.
Potential regulatory responses to rising tech costs.

Practical guidance

Do

Stay informed about market trends and pricing announcements from manufacturers.
Consider the long-term value of technology purchases, especially with rising costs.
Explore refurbished or older tech options if new devices become prohibitively expensive.

Don’t

Don’t rush into purchasing new devices without assessing the cost implications.
Don’t overlook the potential for price drops in the future as market conditions change.
Don’t ignore the option of negotiating prices or seeking competitive offers from different retailers.

Checklist

Check current prices for devices you need.
Research RAM specifications and how they impact device performance.
Evaluate your tech needs and whether a lower-spec device could suffice.
Monitor industry news for updates on RAM price changes.
Consider waiting for major sales events to purchase new technology.

Risks, caveats, and uncertainties

The evolving nature of the RAM market means that prices could fluctuate further based on supply chain dynamics and manufacturer decisions. There is also the risk of manufacturers not being able to meet future demand, which could exacerbate price issues. Therefore, consumers should remain cautious and informed about the market landscape.

Bottom line

The anticipated rise in RAM prices is set to affect consumers significantly in 2026, with manufacturers likely passing on these costs to end users. As technology becomes increasingly central to daily life, consumers will need to navigate a landscape of higher prices or consider alternatives, such as older or lower-spec devices.

FAQs

Why are RAM prices increasing so dramatically?

RAM prices are rising primarily due to increased demand from AI applications and data centres, creating a supply-demand imbalance that manufacturers cannot absorb.

How will this affect consumers in the UK?

Consumers can expect higher prices for essential devices like laptops and smartphones, as manufacturers are likely to pass on increased component costs.

What can consumers do in response to rising prices?

Consumers should stay informed about market trends, consider purchasing refurbished devices, and evaluate their technology needs before making purchases.