AI demand is jacking up prices for iPads, Nintendo Switches and other gadgets. What experts say you should do

If you're considering purchasing a new laptop, gaming console, or tablet, brace yourself for higher prices. The surge in demand for memory chips—essential for fast data processing—has been largely driven by the rapid growth of artificial intelligence. This increased demand for memory, a critical component in computer hardware, has caused significant shortages, primarily affecting consumer electronics from major brands like Apple, Microsoft, and Nintendo. While manufacturers such as Micron, Samsung, and SK Hynix are thriving from the heightened demand, consumers are feeling the pinch. The shortage is expected to continue until at least 2028 as these manufacturers build new facilities to meet demand. Analysts predict that prices may not revert to their previous levels even after the shortage is addressed. Asha Sharma, CEO of Microsoft's Xbox division, referred to the memory crisis as “the most severe hardware crisis in history” in an internal communication. The impact of this shortage is particularly acute on gaming consoles, tablets, and laptops. Devices such as the PlayStation 5, Nintendo Switch 2, Valve Steam Deck, and various Apple products—including iPads and MacBooks—have seen notable price increases in recent months. Additionally, Microsoft has announced plans to raise Xbox prices in August, which is likely to affect sales of smartphones and laptops as well. According to the International Data Corporation (IDC), global PC shipments are anticipated to drop by 11.3% in 2026, while the smartphone market is expected to experience its largest annual decline. However, not all tech products will feel the same impact. Devices that require less memory, like smartwatches and wireless earbuds, may not see significant price hikes. For larger items, while prices are expected to continue to rise, the most drastic increases may be behind us. Jitesh Ubrani, IDC's director of consumer devices research, stated that while prices will keep climbing, the rate of increase will slow down. Some experts advise consumers to make purchases sooner rather than later, as it may take a year for any reductions in memory component prices to reach consumers. Timing is crucial, especially since many tech companies unveil new gadgets in the fall ahead of the holiday season. For instance, waiting for a new iPad model could save you money if Apple is about to launch an upgraded version. While Apple hasn't increased iPhone prices recently, analysts expect significant hikes are on the horizon, potentially raising costs by $250 to $300 to maintain profit margins. This could mean consumers might soon be looking at prices around $1,500 for future models. For those looking to dodge the current price increases, exploring the secondhand market may be a wise choice. Companies like Amazon and Apple offer certified renewed or refurbished products at lower prices, providing an opportunity to purchase inspected and tested devices that often perform similarly to new ones. However, consumers should be cautious about selecting older models to avoid the need for early upgrades. Additionally, purchasing additional cloud storage or simply replacing a phone's battery could be viable alternatives to buying a new device. The resolution of the memory shortage remains uncertain, as establishing new manufacturing plants is a complex and lengthy process. Mike Howard from TechInsights emphasized the intricacies involved in scaling up production, noting that the industry is already operating at maximum capacity. “It’s super complicated,” he remarked, highlighting the challenges ahead.