Laptops, Phones Get Costlier as AI Fuels Chip Shortage

Consumers are facing higher prices for everyday electronics like laptops and smartphones as the booming demand for artificial intelligence chips strains global supply chains. AI companies are aggressively purchasing memory chips in massive quantities, leaving fewer components available for manufacturers of consumer devices.

This surge in demand has led to significant price hikes. According to reports, prices have risen by €50 to €200, depending on the memory capacity. For instance, Samsung's Galaxy A smartphones are now approximately €50 more expensive than last year's models, despite offering similar specifications. The PlayStation 5 has seen a price increase of about €100 since the beginning of the year, while Microsoft is implementing a €50 price hike for Xbox consoles in the Netherlands starting in August.

Some laptop makers are responding by reducing the memory in their devices from 16GB to 8GB without adjusting prices, a move that further impacts value for consumers. Apple also increased laptop prices by at least €100 last month. Major chipmakers anticipate these shortages will persist, with Micron forecasting tight memory chip supplies continuing through at least 2028 as AI development accelerates.