Gadget prices could increase significantly in 2026 as rising memory and storage costs put pressure on manufacturers worldwide. Find out why technology prices are rising and what Australian consumers should know before buying their next device.
Why are gadget prices increasing in 2026?
Technology prices are facing renewed pressure in 2026, with rising costs for memory chips, storage and other components affecting the global electronics industry.
The rapid growth of artificial intelligence (AI) is one of the major factors behind the increase. AI data centres require enormous quantities of high-performance memory and storage, increasing competition for semiconductor production capacity.
As demand for these components grows, manufacturers are facing higher costs and some of those costs are likely to be passed on to consumers.
According to Gartner, combined DRAM and SSD prices could increase by 130% by the end of 2026. The research firm estimates that this could contribute to PC prices increasing by around 17% and smartphone prices by approximately 13% compared with 2025.
Will smartphones become more expensive?
Smartphone prices could be significantly affected by rising memory costs. Modern smartphones increasingly rely on larger amounts of RAM and storage, particularly premium devices designed to support on-device AI features.
When the cost of these components increases, manufacturers have several options. They can absorb the additional cost, reduce specifications or increase the retail price.
For consumers, this could mean that buying a new smartphone in 2026 may cost more than expected. Budget and mid-range smartphones could be particularly vulnerable because manufacturers have less room to absorb higher component costs without affecting their margins.
Laptop prices could also increase
Laptops and desktop computers are another major area of concern. RAM and SSD storage are essential components in modern computers, meaning increases in memory and storage prices can directly affect manufacturing costs.
Gartner expects PC prices to increase by approximately 17% in 2026 as a result of rising memory costs. For Australian consumers, this could make choosing the right laptop more important than ever.
Instead of simply looking for the cheapest laptop available, buyers may want to consider performance, storage capacity, upgradeability, warranty and expected lifespan.
How AI is affecting technology prices
The AI boom is changing more than just software. Large technology companies are investing billions of dollars in AI data centres. These facilities require specialised processors, high-bandwidth memory, conventional DRAM and enormous amounts of data storage.
This creates competition between AI infrastructure and consumer electronics manufacturers for semiconductor production. The result is a technology supply chain where higher demand from AI can eventually affect the price of everyday products.
In simple terms:
More AI infrastructure → higher demand for memory and storage → tighter supply → higher component costs → potential increases in gadget prices.
What does this mean for Australian consumers?
Australia is not isolated from global technology price movements. Most smartphones, laptops, tablets, gaming consoles and computer components sold in Australia are manufactured overseas and rely on international supply chains.
When component costs increase globally, Australian retailers and consumers can eventually feel the impact. Exchange rates, shipping costs, GST, retailer margins and manufacturer pricing strategies can also influence the final Australian retail price.
This means the percentage increase experienced by Australian consumers may not be exactly the same as the global increase in component prices.
Should you buy a new phone or laptop now?
If your current device is still working well, there may be no need to upgrade immediately. However, if you already planned to purchase a new laptop, smartphone, desktop PC or other major gadget within the next year, it may be worth researching prices sooner rather than later.
Consider the following before making a purchase:
1. Compare prices
Check several retailers before buying. Prices can vary considerably between stores, particularly during promotional periods.
2. Look beyond the headline price
A cheaper laptop with limited RAM or storage may not provide better value if you need to upgrade it soon.
3. Consider refurbished devices
Quality refurbished smartphones, laptops and computers can offer significant savings compared with buying new.
4. Buy for the long term
A reliable device with better specifications and longer software support can provide better value over several years.
5. Watch for genuine sales
Major shopping events can provide opportunities to purchase technology at a lower price. However, always compare the sale price with historical pricing before assuming you are getting a bargain.
Could technology prices continue rising?
The current pressure on memory and storage prices could last beyond 2026. The expansion of AI infrastructure is a long-term trend rather than a short-term technology cycle. If semiconductor manufacturers continue prioritising high-demand AI components, consumer electronics manufacturers could continue facing higher input costs.
This could change the traditional technology buying cycle. Consumers have generally become accustomed to getting more performance and storage for the same amount of money every few years. Rising component costs could make that trend harder to maintain.
What about gaming PCs and consoles?
Gaming technology could also be affected. Gaming PCs use significant amounts of RAM, SSD storage and graphics processing hardware. Higher component prices can therefore increase the cost of building or upgrading a gaming computer.
Gaming consoles may also face cost pressures because they rely on processors, memory and storage. However, the impact will depend on individual manufacturers, production volumes, existing inventory and how much of the additional cost companies choose to absorb.
TechnoFin Consultancy takeaway
Technology is changing quickly and so is the cost of technology.
As AI continues to reshape the global electronics industry, TechnoFin will keep an eye on the trends that could affect Australian consumers and businesses.
Whether you’re buying a new smartphone, upgrading your laptop or investing in technology for your business, don’t just look at today’s price, think about tomorrow’s value.
Planning your next technology purchase? Do your research, compare your options and make your money work smarter.
