Electronics price hike due to global memory chip shortage ‘May just be the new normal’

Tech experts are warning that a global memory chip shortage driven by technology giants is causing prices to soar for many consumer electronic products.

“All these AI data centres that are powering all these AI tools, they need huge amounts of RAM and they are basically gobbling it up right now,” said Mike Agerbo from GetConnected Media.

Memory chips or RAM (Random Access Memory) are in short supply around the world. RAM allows your computer to access data quickly and efficiently; however, major tech companies, including Google, Microsoft, and Meta are buying up the global supply to fuel their AI centres.

That’s leaving less RAM for the traditional electronics market. Given the shortage, industry experts predict prices for many consumer electronic products like laptops, tablets, and even smartphones will increase by as much as 20 per cent or higher.

“I think we’re going to be looking at rapid price increases over the next 12 to 24 months minimum,” Dwight Dubowits of North Vancouver’s Concept Computers told Consumer Matters.

Dubowits has been in the computer business for over 40 years and says the shortage of RAM is causing a seismic shift in the industry.

“I think the $600 laptop and cheap desktop market has pretty much disappeared at this point,” he said.

“Entry level is in the $800-$900 range. We see that going as high as $1,200 or $1,300 just to get a basic function, reasonable quality laptop computer.”

Dubowits also says some local dealers are being forced to reduce costs by offering systems with less RAM. “Consumers should ensure that these systems are, in fact, upgradable,” said Dubowits. “Many systems, especially laptops, have limited or no capacity for adding more RAM post-purchase.”

The shortage is also hitting the gaming industry especially hard. GamerTech Toronto builds custom gaming desktop computers and says it’s spending four times as much for RAM on its computers.

“Basically, the entire cost to build the computer has increased and so we are having to pass that along for the actual sale price,” said Niam Radia from GamerTech Toronto. “This may just be the new normal for RAM pricing and PC part pricing overall.”

Three major companies manufacture and control most of the world’s memory chips and experts predict this shortage could continue well into 2027.

“I would recommend looking at purchasing a computing device now. If you’ve been thinking about it in the next six months, I’d get it now because I can only see the prices basically going up,” Agerbo said.

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