The cost of a new laptop, tablet, or games console has jumped by as much as 40% in the past year, as Apple, Microsoft and other electronics giants pass on the soaring price of memory chips. In June 2026, Apple raised MacBook and iPad prices by nearly 20%, while Microsoft’s Xbox announced its third console price hike in just over a year. Both companies blamed an “unprecedented” surge in the cost of memory and storage components, driven by the insatiable demand for chips from AI data centres.
Memory chips – specifically dynamic random-access memory (DRAM) and NAND flash storage – are essential in virtually all modern gadgets. Historically, their price fell over time. But the AI boom has changed that. Tech giants and startups are building vast data centres to train and run AI models, requiring huge numbers of high-performance chips. Memory manufacturers such as Micron have prioritised orders from AI chipmakers like Nvidia, leaving less supply for consumer electronics. The resulting shortage has caused memory prices to spike: DRAM prices rose 98% in the first quarter of 2026 alone, according to industry tracker TrendForce, and are expected to jump another 58-63% in the second quarter. Some analysts have dubbed the situation “Ramageddon”.
“Explains how AI data centre demand drives memory chip costs, causing price hikes on gadgets like MacBooks and Xbox consoles.”
For UK consumers, the impact is already clear. Apple’s cheapest laptop, the Neo, now starts at $699 – $100 more than just months ago. An Xbox Series X console will cost £75 more from August, making it 30-40% more expensive than a year ago. Nintendo has also said it will raise the price of its Switch 2 in September, and Valve has increased the Steam Deck handheld by 40%. Even older devices are no longer getting cheaper. The price rises are hitting wallets across the UK, and analysts warn the iPhone – Apple’s top seller – could be next, possibly with a price hike at its autumn launch.
Q: Why are tech prices going up? A: The main cause is a global shortage of memory chips (DRAM and NAND flash), which are used in almost all electronics. Demand from AI data centres has outstripped supply, driving up component costs. Manufacturers like Apple and Microsoft are passing those costs to consumers.
Q: Will iPhone prices rise? A: Not yet – Apple has so far shielded the iPhone from price hikes. But analysts expect an increase at the iPhone's next launch, likely in autumn 2026. IDC’s Nabila Popal said: “The iPhone isn’t spared. Its hike is coming.”
Q: How long will high prices last? A: It’s unclear. Xbox said it expects memory and storage costs to double again by 2027, suggesting further price rises may be needed. TSMC, the world’s largest chipmaker, has also hinted at raising its own prices. Unless AI demand eases or memory production ramps up significantly, high gadget prices could persist for years.
What happens next: Apple may raise iPhone prices at its September launch. Xbox’s next-generation console Helix could be unaffordable if costs keep climbing. Investors are already nervous – Apple’s share price fell nearly 5% after its announcement. The broader tech industry faces a delicate balancing act between AI investment and consumer affordability.