Laptops, Phones Get Costlier as AI Fuels Chip Shortage

GENEVA, July 11: Laptops, smartphones and gaming consoles are becoming more expensive as soaring demand for memory chips used in artificial intelligence (AI) data centers tightens supplies for consumer electronics, according to a report.

Dutch broadcaster NOS said AI companies are purchasing memory chips in large volumes, leaving fewer available for manufacturers of consumer devices. As a result, buyers are paying more while, in some cases, receiving devices with lower specifications.

Tech website Tweakers reported that prices have risen by €50 to €200, depending on memory capacity. Samsung's Galaxy A smartphones are around €50 more expensive than last year's models despite similar specifications, while the PlayStation 5 now costs about €100 more than earlier this year. Microsoft has also announced a €50 price increase for Xbox consoles in the Netherlands starting in August.

The report added that some Windows laptop makers have reduced memory from 16GB to 8GB without lowering prices, while Apple increased laptop prices by at least €100 last month. Major chipmakers expect supply shortages to continue as AI demand grows, with Micron forecasting tight memory chip supplies through at least 2028.