How the AI boom is making your phone, PC and game console more expensive

• That insatiable demand has hit an inflection point, where the world's memory makers have little choice but to cut off consumer supplies to feed more lucrative business demand.
• The rising prices and shortages are a tangible example of how the AI boom could impact you — even if you're not using AI at all.

By the numbers: Prices for RAM, the memory modules crucial to consumer PCs, have roughly quadrupled in the last two months.

• Micron Technology shocked the market when it discontinued its popular Crucial brand earlier this month, but even before that prices had been skyrocketing.
• The popular tech website Tom's Guide calls the crisis "RAMageddon."

How it works: Many of these companies are shifting their RAM resources from consumer products to data centers, which causes the manufacturers of devices like laptops, PCs, smartphones and gaming consoles to raise their prices because of the shortage.

• The shortage may also mean that consumer products may also be made with less memory than before — regardless of their price changes.

So far, the dwindling RAM resources have hit gamers, graphic artists and others who use PCs at maximum intensity. But soon, it'll come for everyone else.

Here's how it'll impact your smartphone, video game console and PC.

Smartphones

Zoom in: Counterpoint Research, in a new paper Tuesday, estimated global cell phone shipments will decline about 2% next year — not because of weak demand, but for a lack of memory to put in the phones.

• That will result in a roughly 7% increase in the average selling price of a phone, Counterpoint estimated.
• The firm estimated surging memory prices have already increased the bill of materials for a low-end phone by 25%, with more to come in 2026.

This could mean that phones won't see an increase in memory space in new models.

• Right now, the iPhone 17 Pro Max and Samsung Galaxy S25 both have 12GB of RAM. Due to the shortage, the next version might also come with 12GB of RAM — instead of increasing to 16GB, according to a TrendForce research report.
• Mid-range phones may soon be capped at 8GB of RAM, and lower-end phones could see 6GB RAM. The 4GB phone could also make a comeback.

What they're saying: "Apple and Samsung are best positioned to weather the next few quarters," said senior analyst Yang Wang in the Counterpoint Research paper. "But it will be tough for others that don't have as much wiggle room to manage market share versus profit margins."

PCs

Major PC companies are already sounding the alarm on rising RAM prices, which will hit customers who build their own custom computers.

• CyberPowerPC, a retailer for PCs and gaming products, announced in December that it planned to raise prices across all of its systems, though they would likely "adjust back accordingly when market conditions change."

• Similarly, laptop maker Framework paused its direct-to-consumer RAM sales over pricing hikes.
• AMD, a major tech company that builds computer chips for gaming and personal use, is reportedly expected to raise prices for graphics products in 2026 by 10% or more.
• Multiple reports suggest Samsung and SK Hynix, two of the biggest memory makers globally, may be raising prices, too, with the latter not seeing an end up to the shortage until possibly 2028.

Zoom in: "[M]edium- and long-term adjustments, such as lowering specifications or raising prices, are inevitable," an analysis from the intelligence firm TrendForce says.

• The report adds that "cutting down on specifications or postponing upgrades has become an essential cost-saving measure for smartphone and laptop manufacturers."

Video game consoles

Like their PC brethren, gamers using hardware like the Xbox or Switch might face some trickle-down effects of the RAM shortage.

• Nintendo saw a 41% price hike for RAM in the current quarter for its Switch 2 console, Bloomberg reports.
• A TrendForce report suggests there may be slower video game console sales overall in 2026 because of the RAM shortage.

Friction point: For years, custom-built PCs have towered over gaming consoles in terms of specs and value. But because of the ongoing RAM shortage, some experts suggest a device like the PlayStation 5 might be better value because of its lower sticker price.

The bottom line: The AI boom is in many ways driving the entire economy — but it's probably going to cost you money in the process.

More from Axios:

OpenAI to pour billions into chipmaker AMD

Micron to exit consumer memory business amid data center boom

Gaming industry reckoning