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ZDNET's key takeaways
- Expect to pay more for PCs and smartphones this year.
- Memory chips are seeing shortages and cost increases.
- Apple and Samsung aren't likely to be affected.
Are you looking to buy a new computer or smartphone this year? Well, you may have to shell out more money to snag that new device.
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The DRAM and NAND chips used in PCs, smartphones, and other consumer electronics are experiencing shortages, putting pressure on the overall market, according to a December report from IDC. With the shortages come cost increases for these vital memory chips. That, in turn, will prompt many PC and mobile phone makers to pass along the higher costs to consumers by raising prices on their own products.
What's behind the shortages?
Blame AI. Businesses are scooping up more and more memory for their AI data centers and hardware. These systems require much larger amounts of memory than do conventional PCs and other personal devices.
This transition means that fewer memory chips are available for consumer products, creating a shortage and subsequent price increases.
Unlike many component shortages, which tend to be cyclical, this one may be here to stay.
Calling it a “potentially permanent, strategic reallocation of the world's silicon wafer capacity,” IDC cited a heavy demand for high-bandwidth memory among such vendors as Microsoft, Google, Meta, and Amazon. That has driven the top three memory makers (Samsung Electronics, SK Hynix, and Micron Technology) to shift their limited resources and budgets toward higher-margin, enterprise components.
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Looking at smartphones, IDC expects the overall market to face continuing pressure this year. That's especially true for Android device makers who try to add prominent and attractive features to more affordable phones. Though memory may seem like just another component, it plays a significant role in the price of a phone.
“The cost structure of a smartphone is heavily dependent on the memory used,” IDC analysts explained. “For a mid-range device, memory can represent 15-20% of the total bill of materials (BOM), while for a high-end flagship device, it is around 10-15%. As memory prices continue to surge, OEMs will likely have to raise prices significantly, cut specifications, or both.”
Why Apple and Samsung are safe
There is one saving grace. Those of you eyeing an iPhone or Samsung phone should be spared price increases this year, at least due to the memory shortage. That's because these high-end market leaders are hedged against such obstacles. Thanks to their ample cash in reserve and long-term agreements with suppliers, Apple and Samsung are able to grab enough memory to last a year or two in advance.
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The only downside is that new flagship phones from the two market leaders likely won't see any increase in RAM for 2026. This means the iPhone Pro models and Samsung's high-end Galaxy devices will likely stick with 12GB of memory rather than jumping to 16GB this year.
As for the PC market, several of the leading vendors have already warned of cost increases for the second half of 2026, IDC said. Lenovo, Dell, HP, Acer, and ASUS have all pointed to 15-20% price hikes due to the memory shortage.
The hardest hit
Those with higher existing inventory and greater leverage with suppliers should be better positioned to ride out the storm. But smaller, lower-tier, and even local computer vendors will be hit the hardest. This includes sellers of DIY systems typically desired by gamers and tech enthusiasts.
Given the situation, IDC said it expects average PC selling prices to rise by 4% to 6% in a moderate scenario and by 6% to 8% in a more pessimistic outlook.
“As the industry adjusts to this new reality, the smartphone and PC markets are bracing for a period of higher costs, altered product roadmaps, and slower volume growth,” IDC concluded. “For consumers and enterprises alike, this signals the end of an era of cheap, abundant memory and storage, at least in the medium term. The year 2026 is shaping up to be one in which technology becomes more expensive, driven by supply constraints rather than demand growth.”
