Follow ZDNET: Add us as a favorite source On Google.
ZDNET Highlights
- Expect to pay more for PCs and smartphones this year.
- Memory chips are experiencing shortages and rising costs.
- Apple and Samsung are unlikely to be affected.
Are you thinking of buying a new computer or smartphone this year? Well, it may cost you more money to buy that new device.
Also: CES 2026 news: Live updates on TVs, smart glasses, robots, and more What we’ve seen so far
There is a shortage of DRAM and NAND chips used in PCs, smartphones and other consumer electronics, putting pressure on the overall market. December report from IDCWith scarcity also increases the cost of these critical memory chips, This, in turn, will lead many PC and mobile phone manufacturers to pass on higher costs to consumers by raising the prices of their products,
What is behind the shortage?
Blame the AI. Businesses are committing more and more memory to their AI data centers and hardware. These systems require much larger amounts of memory than traditional PCs and other personal devices.
This change means that fewer memory chips are available for consumer products, creating shortages and subsequently increasing prices.
Unlike many component shortages, which are cyclical, this one may be here to stay.
IDC cited strong demand for high-bandwidth memory among vendors such as Microsoft, Google, Meta, and Amazon, calling it “a potentially permanent, strategic reallocation of the world’s silicon wafer capacity.” This has led the top three memory manufacturers (Samsung Electronics, SK Hynix and Micron Technology) to shift their limited resources and budgets toward higher-margin, enterprise components.
Also: New laptop? How to clean your old Windows PC before you get rid of it
Looking at smartphones, IDC expects the overall market to face continued pressure this year. This is especially true for Android device makers who try to add flagship and attractive features to more affordable phones. Although memory may seem like just another component, it plays a significant role in the price of a phone.
“The cost structure of a smartphone depends largely on the memory used,” IDC analysts explained. “For a mid-range device, memory may represent 15-20% of the total bill of materials (BOM), while for a high-end flagship device, it is around 10-15%. As memory prices continue to rise, OEMs will likely have to significantly increase prices, cut specifications, or both.”
Why are Apple and Samsung safe?
A saving grace. Those of you looking to buy an iPhone or Samsung phone should at least avoid the price hike this year due to the lack of memory. This is because these high-level market leaders have survived such disruptions. Because of their substantial cash reserves and long-term agreements with suppliers, Apple and Samsung have been able to acquire enough memory to last a year or two.
Also: Finally, a computing accessory that both PC enthusiasts and professionals can get excited about
The only downside is that new flagship phones from the two market leaders will not see any increase in RAM until 2026. This means that iPhone Pro models and Samsung’s high-end Galaxy devices will stick with 12GB of memory instead of reaching 16GB this year.
IDC said that as far as the PC market is concerned, several major vendors have already warned of cost increases for the second half of 2026. Lenovo, Dell, HP, Acer and ASUS have all pointed to 15-20% price increases due to memory shortages.
hardest hit
Those that have more existing inventory and more leverage with suppliers should be better positioned to weather the storm. But small, low-end and even local computer vendors will be hardest hit. This includes sellers of DIY systems commonly desired by gamers and tech enthusiasts.
Given the situation, IDC said it expects average PC selling prices to rise 4% to 6% in a moderate scenario and 6% to 8% in a more pessimistic scenario.
IDC concluded, “As the industry adjusts to this new reality, the smartphone and PC markets are preparing for a period of higher costs, altered product roadmaps and slower volume growth.” “For consumers and enterprises, this signals the end of the era of affordable, abundant memory and storage, at least in the medium term. The year 2026 is shaping up to be a year in which the technology will become more expensive, driven by supply constraints rather than increased demand.”
