RAMaggedon: AI Demand Threatens Budget Hardware

The era of affordable consumer electronics is facing a severe squeeze as memory manufacturers pivot toward AI infrastructure. According to reporting from TechCrunch, Samsung—which supplies approximately one-third of global memory chips—expects the current RAM chip shortage to intensify in 2027 and persist until at least 2028.

Samsung revealed during its Q2 earnings call that frontier AI labs are providing medium- to long-term demand forecasts to secure future supply. This shift allows Samsung to prioritize long-term contracts and ramp up production for data centers, effectively moving capacity away from consumer electronics.

This supply shift is already impacting hardware pricing. TechCrunch reports that Apple raised prices for its iPads, Macs, and Macbooks last month, while Samsung has increased the cost of its Galaxy tablets and smartphones. Additionally, Nvidia is expected to hike consumer graphics card prices by 20% to 30%, a move that may drive up prices for consoles, desktop computers, laptops, and gaming devices.

The financial impact is evident in corporate earnings. Samsung noted that while its semiconductor unit reached record sales in Q2, profitability in its TV and smartphone divisions declined due to higher component costs. Apple has also warned of a slowdown in revenue growth for the upcoming quarter, projecting a year-over-year increase of between 9% and 11%, compared to a previous growth rate of 16%.