Business · Companies · 7 hrs ago
Rising memory chip costs push up electronics prices before Christmas
Memory chip shortages are making many electronics more expensive ahead of Christmas.
The price increases affect products such as computers, smartphones, graphics cards and storage drives.
Prices for graphics cards in September were almost twice as high as a year earlier, while desktop PCs cost 41% more, according to market researcher NIQ.
After a pandemic-era boom left chipmakers with excess stock and falling prices, they cut production to limit losses.
Demand has since surged as companies build AI data centres, while chip production takes months or years to expand and manufacturers are prioritising some chips for AI servers.
The resulting shortage is raising costs for electronics makers, which are passing more of those costs on to shoppers.
Retail and industry groups warn that higher prices and cautious spending could weaken holiday sales.
Chipmakers have sold much of their capacity years in advance, and forecasts cited in the sources suggest relief may take at least two years, though some see shortages lasting until 2030.
Higher memory-chip costs are pushing up prices for computers, smartphones and other electronics ahead of Christmas.
The shortage reflects reduced chip production and rising demand from the expansion of artificial-intelligence data centres.
NIQ said graphics-card prices in September were nearly double their level a year earlier, while desktop PCs cost 41 percent more.
Manufacturers are passing on higher costs, and further price adjustments remain possible.
Industry analysts and trade groups warn that supply constraints could weigh on the holiday shopping season.
- Who
- Consumers buying electronics, and the manufacturers and retailers supplying them.
- What
- A shortage of memory chips is raising prices for electronics ahead of Christmas.
- When
- Before Christmas 2026; the articles were published on November 8, 2026.
- Where
- Not stated
- Why
- Chip production was reduced after an earlier market downturn, while demand has risen with the global expansion of AI data centres.
This story does not have two clearly opposing sides.
The global memory market entered a severe downturn, with full inventories and falling prices for DRAM and NAND memory.
Samsung, SK Hynix and Micron cut wafer production, shut production lines and froze investment programmes for new factories.
Technology companies bought large quantities of memory components, adding pressure to limited supply.
NIQ data showed average graphics-card prices were nearly twice their level a year earlier.
Reports warned that memory-chip costs were raising electronics prices ahead of the Christmas shopping season.
- Desktop PCs
- Cost 41 percent more, according to NIQ
- Graphics cards
- Average prices in September were nearly double the previous year
- SK Hynix production
- Half of its production had been allocated through 2028
- Potential market relief
- Gartner expected improvement no earlier than two years later
2 sources
What people are saying
The ongoing shortage of semiconductors and memory components is currently making products such as PCs, smartphones and SSDs more expensive.
This effect is already clearly noticeable for customers.