‘RAMageddon’: is the era of cheap phones and laptops over?

A global shortage of memory chips, driven by massive investments in artificial intelligence infrastructure, threatens to end the era of affordable consumer electronics, with analysts forecasting sharp price increases for laptops and phones [1]. The shortage, termed "RAMageddon" by the tech press, is not caused by conflict or materials scarcity but by the expansion of AI server farms, which are consuming current supply and production capacity for years [1]. Analyst firm TrendForce estimates prices for mainstream laptops could rise by as much as 40% in 2026 due to the chip shortage and rising component costs [1]. Memory accounts for 30% of a budget smartphone's cost and 23% of an entry-level laptop's, making many low-margin models potentially unviable [1]. Ranjit Atwal of Gartner stated, "This sharp increase removes vendors’ ability to absorb costs, making low-margin entry-level laptops non-viable. Ultimately, we expect the sub-$500 entry-level PC segment will disappear by 2028" [1]. Manufacturers are already responding: Apple raised the starting price of its MacBook Air by £100, Microsoft added £170-£200 to Surface models and phased out cheaper versions, and Dell, Lenovo, and Framework have also increased prices [1]. Sony raised the PS5 price by £90, Meta added £30 to its Quest 3S headset, and Samsung increased prices on some smartphone models by £50 [1]. The main memory makers—Samsung, SK Hynix, and Micron—are building new capacity, but most won't be operational until 2027 at the earliest, with SK Hynix expecting the shortage to last until 2030 [1].