Moneycontrol PRO
Loans
Loans
HomeTechnologyGlobal memory chip shortage may push up prices of phones and PCs in 2026

Global memory chip shortage may push up prices of phones and PCs in 2026

A global memory chip shortage in late 2025 is driving up the cost of smartphones and laptops, and the effects could last until 2027, says IDC. The shortage is happening as chip makers prioritize AI memory production, leaving everyday devices facing higher prices and limited upgrades in 2026.

December 26, 2025 / 13:50 IST
phone

If you have been thinking about buying a new smartphone or laptop next year, there is a chance it might cost more than you expect. That’s because the global tech industry is facing a serious shortage of memory chips, the tiny components that store data in devices like phones, computers, tablets, and even AI systems. According to research firm IDC, this shortage has reached an unprecedented level in late 2025 and could affect pricing and availability of popular electronics well into 2027.

Memory chips are essential for everything from running apps on your phone to storing files on your laptop. Two main types are DRAM, which helps devices run programs, and NAND/SSD, which stores photos, videos, and files. Right now, demand for these chips far exceeds supply. But this time it isn’t just a typical imbalance caused by shifting trends. It is happening because the tech world is rapidly changing how it uses memory.

In recent years, artificial intelligence (AI) has grown at an astonishing pace. AI systems, especially those used by big cloud companies like Google, Microsoft, Meta, and Amazon, require massive amounts of memory to work properly. This has led major memory chip makers such as Samsung, SK Hynix, and Micron to shift their factories and resources toward producing memory for AI data centers, where profits are higher. In doing so, they have reduced the production of memory used in everyday devices like smartphones and PCs.

The result is a tighter supply of general-purpose memory chips and much higher prices. For device makers, memory costs make up a significant portion of the total cost of a smartphone or laptop. When those costs go up, companies are left with difficult choices. They can raise prices for consumers, cut down on memory specs, or both.

This shift in chip production could have a noticeable impact in 2026. In the smartphone world, cheaper phones may no longer offer the same high-end memory features they once did. That could push prices up or reduce choices for budget buyers. Bigger brands like Apple and Samsung are better positioned to manage the shortage because they secure memory supplies long in advance. Smaller brands that compete on thin profit margins could struggle and might pass those costs on to buyers.

The personal computer market is also feeling the squeeze. Many PC makers have already warned of price increases of up to 20 percent next year. It’s a perfect storm that arrives just as a new wave of “AI PCs” with advanced features was supposed to boost sales. Those machines need even more memory, which is now in short supply and expensive.

IDC says that if the shortage continues through 2026, we could see fewer devices sold globally and average prices rising noticeably. In the best case, smartphone sales might drop a little while prices go up modestly. In a worse scenario, both sales and prices take a bigger hit. For PCs, sales could shrink even more.

For consumers, this means that the era of cheap, abundant memory may be over for now. Buying a new phone, laptop, or AI-ready device in 2026 may cost more, and you might have fewer choices. How long this lasts depends on how quickly chip makers can expand production and whether demand for memory begins to balance out. Until then, tech could become a bit more expensive — not because we want it to, but because the chips that make it work are hard to find.

Invite your friends and family to sign up for MC Tech 3, our daily newsletter that breaks down the biggest tech and startup stories of the day

Ankita Chakravarti
Ankita Chakravarti is a seasoned journalist with nearly a decade of experience in media. She specializes in technology and lifestyle journalism. She has worked with top Indian media houses like India Today, Zee News, The Statesman, and Millennium Post. Her expertise spans tech trends, phone launches, gadget reviews, and entertainment news. Ankita holds a Master's in Journalism and Mass Communication along with a degree in English Literature. She can be reached out at ankita.chakravarti@nw18.com
first published: Dec 26, 2025 01:50 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347