AI Chip Demand Drives Up Prices of Laptops and Smartphones
The prices of consumer electronic devices such as laptops, smartphones and games consoles have reportedly risen significantly. The trend has been triggered by soaring demand for memory chips for artificial intelligence (AI) data centres, which has squeezed supply for the wider electronics industry.
The Dutch public broadcaster NOS reported on Saturday (11 July) that large-scale purchases of memory chips by AI data centre operators have limited the availability of components for devices sold to ordinary consumers.
“We were actually used to seeing the prices of electronic devices keep falling,” said Tomas Hochstenbach of the Dutch technology website Tweakers. “But now, the device you buy most likely has lower specifications than the one available a year ago.”
Tweakers’ Pricewatch data shows consumers now have to dig deeper into their pockets, with increases ranging from 50 euros to 200 euros (around Rp1 million to Rp3.5 million), depending on the memory capacity of the device purchased.
The price rises are clearly visible on several popular products. The Samsung Galaxy A model, for instance, is now sold for around 50 euros more than last year’s series, despite carrying almost identical specifications and memory capacity. In the entertainment sector, the price of the PlayStation 5 (PS5) console has risen by around 100 euros since the start of this year.
A similar move has been taken by Microsoft, which announced a 50 euro increase in the price of Xbox consoles in the Netherlands from August. Meanwhile, Apple raised the prices of its laptops by at least 100 euros last month.
Beyond direct price rises, the report highlights a strategy among Windows-based laptop manufacturers of fitting 8 gigabyte (GB) of memory, down from the previous standard of 16 GB, whilst keeping the selling price unchanged. This means consumers are getting lower-capability devices for the same money.
The situation is not expected to improve in the near term. Major chip manufacturer Micron predicts that supply constraints caused by high demand from the AI industry will continue at least until 2028.