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RAM costs double since October, threatening device prices
The price of random-access memory (RAM), a key component in smartphones, laptops, and medical devices, has more than doubled since October 2025. Industry experts warn the surge could push up consumer prices for electronics in 2026.
AI data centers drive demand, disrupting supply
Analysts attribute the spike to soaring demand from artificial intelligence (AI) data centers, which rely heavily on RAM. The imbalance between supply and production capacity has left manufacturers scrambling to secure components.
"We're seeing quotes up to 500% higher than just a few months ago," said Steve Mason, general manager of CyberPowerPC, a custom PC builder. "At some point, these costs will force manufacturers to adjust pricing."
Manufacturers face tough choices on pricing
RAM, which temporarily stores data for active tasks, is essential to nearly all computing devices. With costs rising, manufacturers must decide whether to absorb losses or pass expenses to consumers.
"If it uses memory or storage, there's potential for price increases. Both manufacturers and consumers will have to make choices."
Steve Mason, CyberPowerPC
Danny Williams of PCSpecialist echoed the concern, predicting price hikes will persist "well into 2026" unless memory costs stabilize. "If prices don't fall, we could see reduced consumer demand next year," he added.
Price disparities and market reactions
Not all RAM suppliers have raised prices uniformly. Some with larger inventories increased costs by 1.5 to 2 times, while others with limited stock hiked prices by up to fivefold.
Chris Miller, author of Chip War, identified AI as the primary driver of demand, particularly for high-bandwidth memory chips. "Prices fluctuate based on supply and demand, and right now, demand is surging," he said.
Cloud providers lock in future demand
Mike Howard of Tech Insights told the BBC that cloud providers like Amazon and Google have finalized their 2026-2027 memory needs, revealing a stark supply shortfall. "Suppliers have pushed prices upward aggressively," he said, with some even pausing price quotes to await further increases.
Howard noted that RAM typically accounts for 15-20% of a PC's cost but now approaches 30-40%. "Margins in consumer electronics can't absorb these increases," he said.
Consumers may face higher costs or lower performance
A 16GB RAM laptop could see manufacturing costs rise by $40-$50 (£30-£37) in 2026, likely passed on to buyers. Smartphones may also face price pressure, with build costs increasing by around $30 per device.
Williams warned that consumers might need to choose between paying more for performance or settling for less powerful devices. "Alternatively, they may keep older tech longer," he said.
Major supplier exits consumer market
Micron, a leading RAM producer, announced in December 2025 it would discontinue its Crucial consumer brand to focus on AI demand. Mason called the move a double-edged sword: "Fewer choices for consumers, but it could free up capacity for others to fill the gap."
Industry forecasts suggest the pricing and supply challenges will persist through 2027, leaving manufacturers and buyers to navigate a volatile market.
