If you’ve been shopping for a new laptop, tablet or gaming console recently, you may have noticed that prices have jumped sharply—and the trend is set to continue. Apple, Xbox and Valve have all announced significant price increases in recent days, blaming soaring costs for the memory and storage chips that power modern electronics.
These price hikes are not limited to one company or product. Apple has raised the price of some MacBooks and iPads by nearly 20%. The iPhone maker said it had “never seen a component price increase this much, this quickly”. The starting price of its cheapest laptop, the Neo, has gone from $599 to $699 just months after launch. Xbox, meanwhile, has increased the price of its basic console by $100 (£75) to $499, and a version with more memory will cost $150 more, taking it to $749. Valve’s new Steam Machine gaming PC—a hybrid console and computer—has launched at £879 in the UK, 75% more than a PlayStation 5, according to analysts. The company said its “original goal for the price … is no longer viable” because of rising hardware costs.
“Explains why Apple, Xbox and Valve are raising prices due to memory chip costs driven by AI demand.”
The root cause of these increases lies in a global shortage of a specific type of component: memory chips, particularly DRAM (dynamic random access memory) and NAND flash storage. These chips are used in virtually every modern gadget, from phones and laptops to servers and cars. The problem is that demand for these chips has exploded, driven by the rapid buildout of data centres that power artificial intelligence (AI). Companies like Nvidia are signing long-term deals with memory makers, prioritising orders for AI applications. As a result, little supply is left for consumer electronics manufacturers, who are forced to pay higher prices—and pass them on to customers.
For UK readers, the immediate impact is that you’ll pay more for new devices. Apple’s increases affect iPads and MacBooks sold in the UK, with a MacBook Air with 512GB of storage going up by $200. Xbox’s console price rise will take effect from August, and Valve’s Steam Machine is already at £879. Even products that haven’t been affected yet, like the iPhone, are expected to see price rises soon. Tech analyst Nabila Popal said: “The iPhone isn’t spared. Its hike is coming.” The broader trend means that any gadget you buy—phone, laptop, console—could become pricier in the coming months.
Q: Why are memory chips suddenly so expensive? A: The main driver is the AI boom. Companies like Nvidia are buying huge quantities of memory chips for AI data centres, creating an imbalance between supply and demand. Memory makers such as Micron have prioritised these high-profit orders, leaving fewer chips for consumer electronics. Prices of DRAM rose as much as 98% in the first quarter of 2026 alone.
Q: Which companies have raised prices so far? A: Apple increased prices on iPads and MacBooks by nearly 20%. Xbox raised console prices by $100-$150, its second increase in less than a year. Valve raised the Steam Machine price and also hiked its handheld Steam Deck by 40% earlier in 2026. Analysts expect more companies to follow.
Q: Will iPhone prices go up too? A: Likely yes. Apple has not yet raised iPhone prices, but analysts expect it to happen before the autumn iPhone launch. The company’s statement noted it had “shielded customers from these increases so far” but has now reached a point where it needs to raise prices on multiple products.
What happens next? Industry analyst TrendForce forecasts that memory chip prices will jump another 58-63% in the current quarter. Xbox has warned that memory and storage costs could double again by 2027, leaving the door open for further console price rises. Apple’s shares fell nearly 5% after its announcement, and rival Dell dropped more than 8%, signalling that investors expect the higher prices to hurt sales. For consumers, the message is clear: if you need a new gadget, buy now—or expect to pay significantly more later.