AI‑driven memory crunch threatens sub‑£500 laptops by 2028

*TL;DR: AI‑fuelled memory shortages could raise $900 laptops by up to 40% and wipe out the sub‑£500 segment by 2028.

Context

Memory chips—RAM for short—power everything from smartphones to gaming consoles. A surge in AI workloads has forced data‑centre operators to snap up high‑end RAM, leaving fewer chips for consumer devices. The resulting “RAMageddon” is driving component costs higher across the board.

Key Facts

TrendForce projects that laptops priced around $900 (£667) may see price increases of as much as 40% by 2026 because of the RAM shortage and rising costs of other parts. Gartner analyst Ranjit Atwal warns that the cost pressure will make sub‑£500 laptops unviable, predicting the segment will vanish by 2028. Major manufacturers are already adjusting prices: Apple lifted the base price of its MacBook Air by £100 while doubling the minimum storage, and Microsoft added £170‑£200 to entry‑level Surface models. Dell, Lenovo and others have followed suit, and even gaming consoles such as Sony’s PS5 have seen price hikes.

What It Means

Budget‑focused consumers will face fewer choices and higher entry prices. Memory accounts for roughly 23% of an entry‑level laptop’s bill, so the shortage hits low‑margin products hardest. With Samsung, SK Hynix and Micron only planning to add capacity from 2027 onward—and SK Hynix expecting shortages to linger until 2030—price pressure is unlikely to ease soon.

Buyers who can, should consider purchasing devices now rather than later, or look for refurbished units that avoid the premium on new stock. Repairing existing hardware also becomes a more attractive option as replacement costs climb.

Looking ahead, monitor announcements from memory manufacturers and AI‑focused data‑centre contracts; any acceleration in chip production could temper the price surge and preserve the low‑cost laptop market.