What is 'RAMageddon', the Phenomenon That Could Make Affordable Phones and Laptops More Expensive?
The term ‘RAMageddon’ has recently gained traction in the tech world. This phenomenon refers to the global shortage of memory chips, driven by the rapid growth of artificial intelligence (AI) and the massive expansion of data centres worldwide.
As a result, the supply of memory chips needed for laptops, phones, and even game consoles is becoming increasingly limited.
Several major manufacturers, such as Microsoft, Samsung, and Dell, have begun to raise the prices of their products and withdraw cheaper models from the market.
So, what exactly is RAMageddon, and how does it affect the price of gadgets? Here’s an explanation.
As summarised by KompasTekno from The Guardian, massive investment in AI development is driving the expansion of data centres worldwide, which requires a very large number of high-quality memory chips.
As a result, the supply of memory chips for consumer devices such as laptops, phones, and game consoles is becoming increasingly limited.
Not only memory chips, but the supply of flash storage chips for SSDs and lower-end processors is also being affected as manufacturers switch to producing high-margin chips for AI needs.
This shortage is having a direct impact on the prices of various electronic devices. Research firm TrendForce estimates that the price of mid-range laptops could increase by up to 40 per cent by 2026.
Meanwhile, Gartner analysts predict that the laptop segment below $500 will disappear from the market by 2028.
Several major manufacturers have already begun to adjust prices. Apple has raised the price of the MacBook Air by up to £100 while doubling the minimum storage capacity. Microsoft has removed lower-end Surface models and raised prices by up to £200. Dell, Lenovo, and Framework have also increased the prices of their products.
In the console and other device segments, Sony has raised the price of the PS5 by £90, Microsoft has raised the price of the Xbox, Meta has added £30 to the Quest 3S headset, and Samsung has raised the price of some of its smartphone models.
Unfortunately, this situation is not expected to improve anytime soon. Major chip manufacturers such as Samsung, SK Hynix, and Micron are building additional production capacity, but it will not be operational until at least 2027. SK Hynix even predicts that this shortage could last until 2030.
For consumers planning to buy new gadgets, there are several steps that can be considered. First, buy early before prices rise further. Second, look for older models that are still being sold and produced before the price increase occurs.
Third, consider refurbished devices as a more affordable and environmentally friendly alternative. Finally, if possible, repair existing devices instead of replacing them with new ones.
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