Consumer electronics prices climb as AI data centers hoard memory chips

The price of laptops, smartphones, and game consoles is rising as artificial intelligence data centers consume a growing share of the world's memory chip supply, leaving fewer chips for consumer devices. The trend, reported by several outlets, marks a reversal of the long-running pattern of electronics getting cheaper over time.

Dutch public broadcaster NOS reported that memory chips are being bought in large quantities for AI data centers, according to the Manila Times. Tomas Hochstenbach of Dutch tech site Tweakers described the shift: "We were actually used to devices becoming cheaper. You are probably buying a worse device now than a year ago." :: Manila Times Hochstenbach added that consumers are paying between €50 and €200 more for devices depending on memory size, based on data from Tweakers' Pricewatch.

Manila TimesLaptops costlier as AI fuels chip demand

According to CNN, the AI boom is driving up prices for gadgets including iPads and Nintendo Switches because data centers need massive amounts of DRAM and NAND memory for AI workloads. Memory manufacturers such as Micron, Samsung, and SK Hynix are prioritizing higher-margin data center products, which creates shortages and price increases for consumer electronics.

Experts quoted by CNN advise consumers who need a device to buy now, as prices are expected to keep climbing through 2025. An alternative is to consider buying used or refurbished electronics to avoid paying the premium caused by the AI-driven demand.