The rapid expansion of artificial intelligence is beginning to reshape the consumer electronics market, with smartphones, laptops, tablets, gaming consoles, and other devices becoming increasingly expensive as demand for AI infrastructure surges.
For the past few years, the technology industry has faced pressure from tariffs, supply chain disruptions, and geopolitical tensions. Now, industry experts say the explosive growth of AI data centres is emerging as an even bigger challenge, particularly for the supply of memory and storage components.
On June 25, Apple increased the prices of several products, including MacBooks, iPads, and Apple TV devices, with some models seeing price hikes of up to ₹1 lakh. The company attributed the increase to an unprecedented rise in the cost of memory and storage components.
“The consumer electronics industry is facing an unprecedented challenge. The rapid expansion of AI data centres has created extraordinary demand for memory and storage. We have never seen component prices rise this much, this quickly,” Apple said.
Microsoft has also announced higher prices for its Xbox consoles, with increases of up to $150. The company noted that storage and memory costs have more than doubled in recent years and are expected to continue rising through 2027.
Apple CEO Tim Cook described the surge as unlike anything he has witnessed in more than four decades in the industry. SpaceX CEO Elon Musk echoed those remarks, calling it the biggest price increase he has ever seen in any sector.
According to a Wall Street Journal report, prices of computer software and accessories have already climbed by around 15%, largely driven by massive investments in AI infrastructure. The report estimates that AI companies could collectively invest nearly $8 trillion in AI-related infrastructure by 2032, further intensifying demand for critical components.
The growing competition for memory and storage chips is affecting consumer electronics manufacturers worldwide. Major brands, including Apple, Microsoft, Nintendo, and Sony, have either increased prices or are expected to do so as component costs continue to climb.
Industry analysts believe the trend is likely to continue throughout the year, meaning consumers may have to pay significantly more for new smartphones, laptops, tablets, gaming consoles, and other electronic devices as the AI boom accelerates.
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