AI demand is jacking up prices for iPads, Nintendo Switches and other gadgets. What experts say you should do

By Lisa Eadicicco, CNN

(CNN) — Thinking about buying a new laptop or game console anytime soon? Be prepared to pay up.

Point the finger at the AI boom. Data centers have led to a surge in demand for memory, a critical piece of computer hardware that’s needed to quickly process information.

While that’s good news for memory makers like Micron, Samsung and SK Hynix, it’s bad news for consumers.

Chipmakers can’t produce enough memory for both data centers and consumer devices, leading to a shortage that’s driven up prices for products from Apple, Microsoft and Nintendo, among others.

And experts say there’s no near-term fix in sight. The shortage is expected to persist until at least 2028 as memory giants work to build new plants. Even then, some analysts don’t expect prices to return to pre-shortage levels.

Asha Sharma, CEO of Microsoft’s Xbox division, recently called the memory shortage “the most severe hardware crisis in history” in an email to employees announcing layoffs and structural changes.

What’s getting more expensive?

The price hikes appear to be hitting game consoles, tablets and laptops the hardest. The PlayStation 5, Nintendo Switch 2, Valve Steam Deck and a slew of Apple products — including iPad and MacBook models — have all gotten more expensive over the last few months. Microsoft said it plans to raise Xbox prices in August.

And that’s going to weigh heavily on smartphone and laptop sales, analysts say. Global PC shipments are expected to fall 11.3% in 2026, while the smartphone industry is projected to record its steepest annual decline, according to the International Data Corporation (IDC).

But not every tech product is expected to be impacted; devices like smartwatches and wireless earbuds don’t require as much memory.

For other bigger-ticket items, there’s a mixed outlook: Prices will continue to rise, but the biggest price hikes may soon be behind us.

“That largest bump has happened now,” said Jitesh Ubrani, director of consumer devices research at the IDC. “They’ll continue to rise at a slower pace going forward, but they’re still rising.”

What should you do?

Some analysts suggest buying now before prices increase further. Even if memory component prices come down, it’ll probably take at least a year for those changes to trickle down to consumers, according to Mike Howard, vice president of memory coverage at research firm TechInsights.

But it also depends on the product since many tech companies tend to release new gadgets in the fall ahead of the holiday rush. For example, you wouldn’t want to pay more for an iPad if Apple is about to release a new one.

Tech companies tend to launch new devices around the same time every year.

• Apple products: iPhones in September, iPads and Macs in March or October
• Samsung Galaxy phones: First quarter of the year
• Google Pixel phones: August
• Laptops from various companies: January or June

Apple has not raised iPhone prices, but Howard estimates the company would likely have to increase its smartphone prices by about $250 to $300 to maintain its margins.

“We should start thinking about a $1,500 iPhone instead of a $1,000 (or) $1,200 iPhone,” he said.

Those looking to avoid today’s price hikes could also look at the secondhand market. Amazon, Apple, Samsung and other tech retailers offer certified renewed or refurbished programs, which sell pre-owned products at a discount. The products are inspected and tested before being resold, the companies say on their websites.

“These are mostly new items that are returned,” said Gadjo Sevilla, an analyst covering technology and AI for eMarketer. He added that the performance of refurbished gadgets often isn’t much different from new devices.

However, consumers should be cautious of buying a pre-owned device that’s several generations old to avoid having to upgrade again in the near term.

There are usually plenty of relatively new devices available through refurbished programs since retailers and carriers encourage consumers to trade in their devices for discounts on newer models.

Consumers can also consider purchasing more cloud storage or replacing the battery instead of buying a new phone.

It’s unclear exactly when the memory shortage will be resolved, largely because getting new fabrication plants up and running is an intricate and nuanced process that takes years.

And the industry is already moving as fast as it can, Howard said.

“It’s not a simple process, I think everyone kind of sees that now,” he said. “It’s super complicated. This is the most complex manufacturing on the planet.”

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