Tech consumers are facing a shocking reality: the days of relying on decreasing prices for older gadgets seem to be long gone. Apple and Microsoft are in the spotlight, struggling to gain sympathy from buyers who are reeling from the staggering costs of barely-new electronics. Apple, for instance, has hiked the prices of its tablets and laptops by nearly 20%. Following hot on Apple’s heels, Microsoft announced that it would once again increase the price of its Xbox Series S and X consoles by at least $100, or about £75.70. This marks the third price adjustment in just over a year, pushing the cost of a new console up by a staggering 30% to 40% compared to this time last year. One user on social media reacted to these price hikes, saying, “My favorite hobby is cooked… might as well just cancel” their upcoming console Helix, lamenting that no one will be able to afford it. After the price announcement, Microsoft’s stock took a tumble.
Yang Wang, a principal analyst at Counterpoint Research, described the situation as a “memory crisis.” While the iPhone has, so far, avoided price increases, Wang pointed out that premium phone makers like Apple and Samsung are better positioned to navigate these disruptions. Valve has also entered the fray, launching its new Steam Machine gaming PC at a higher-than-expected price, explaining that rising component costs necessitated this change. Earlier, Valve had already raised the cost of its handheld Steam Deck by 40% due to similar reasons. Apple’s recent announcement highlighted “unprecedented challenges,” with a new budget-friendly line of Neo laptops also receiving price hikes this week.
Once an affordable component, RAM prices have more than doubled from October 2025 to early 2026, according to Danni Hewson, head of official analysis at investment firm AJ Bell. This surge in demand is allowing major chip manufacturers like TSMC to raise their prices. Memory kits like DDR4 and its successor, DDR5, have seen dramatic price increases as well. Counterpoint Research noted that the price of some 32GB DDR5 components for PCs shot up from $94 in the three months leading to September 2025 to $127 in the following quarter. By the first quarter of 2026, these components had skyrocketed by 122% to $282. The prices of DRAM, which provides short-term memory for real-time tasks, and flash memory, which retains data when devices are powered off, have continued to climb.
The demand for memory chips has created a shortage, with the supply chain struggling to keep up. Some big tech firms, like Microsoft, are caught in a dual role—investing billions in AI infrastructure while also selling consumer products like the Xbox. However, the memory shortage and price increases are exacerbated by inflation and geopolitical tensions, as suggested by some analysts. When Sony announced further price hikes for the PS5 in the UK and globally, they cited rising RAM prices and inflation linked to geopolitical events, including the war in Iran. Piers Harding-Rolls from Ampere Analysis remarked that these inflationary pressures, particularly due to the blockade in the Strait of Hormuz, might lead to further price increases for consoles.
Critics are not holding back, especially with tech giants raking in billions annually while hiking product prices. Prominent US Senator Bernie Sanders has spoken out against what he calls corporate greed, expressing concern over Apple’s price increases. Neil Shah, VP of research, anticipates a “constrained supply situation,” and even though improvements in the industry supply may come gradually by 2028, there’s no clarity on when memory supply will catch up with rising demand. Major chipmaker Micron doesn’t rule out further price hikes as costs rise. Nintendo has also apologized after announcing a price increase for its Switch 2.
With all these price hikes, consumers are left wondering: how much more can they take? The landscape is shifting rapidly, and it’s clear that the tech industry must grapple with these new realities. What will happen next? We’re keeping a close eye on developments as they unfold…
Kaynak: Orijinal Haber
