Personal Electronics Spiking in Price as AI Industry Buys Up All the Components

"The AI industry's obsession with building out enormous data centers to house power-hungry chips has put a major strain on the electronics market. First, the price of graphical processing units (GPUs) started shooting through the roof. Then the price of RAM skyrocketed, followed by both solid-state and mechanical hard drives. While that's a nightmare scenario for anyone looking to build a desktop computer, the economic pressure is already affecting the rest of the consumer electronics world as well, as The Verge reports."

"Tech companies have resorted to pushing back releases of enthusiast GPUs, VR headsets, and gaming consoles as a result of skyrocketing prices. Following record sales in 2025, the smartphone market could also be clobbered this year as RAM supplies run extremely low. Even iPhone maker Apple is "getting squeezed," as SemiAnalysis' Sravan Kundojjala told the Wall Street Journal earlier this year, with the AI hype eating far into the company's margins as component prices rise."

"The chip crisis has hit the gaming industry particularly hard, with Bloomberg reporting that Nintendo's already expensive Switch 2 gaming console may soon get a price hike. Sony's long-awaited PlayStation 6 console may also be delayed entirely, according to the publication's sources. It's a brutal new reality as AI companies continue to pour hundreds of billions of dollars into enormous data centers, which is also causing electricity prices to spike."

Massive AI data center construction is creating intense demand for GPUs, RAM, SSDs, and HDDs, driving component prices sharply higher. The spike began with GPU price surges, then RAM shortages, and reached storage devices, squeezing margins and delaying consumer product releases. Manufacturers and retailers are postponing enthusiast GPUs, VR headsets, and gaming consoles in response to supply constraints and cost pressure. Smartphone production faces risk after record 2025 sales as RAM supplies run extremely low, affecting major firms including Apple. The gaming industry faces price hikes and potential console delays. Rising data center build-out also contributes to higher electricity costs.

Read at Futurism