Why Are Computers and Electronics Getting So Expensive?
If you’ve been pricing a new laptop, upgrading your computer or shopping for extra storage, you may have noticed your budget doesn’t stretch as far as it used to.
One of the biggest reasons is something hidden inside the devices we use every day: memory chips.
Global demand is putting pressure on the supply of these components, and the effects are reaching ordinary computer buyers.
The AI boom is affecting everyday technology
Artificial intelligence runs on huge data centres packed with powerful servers. Those servers need enormous amounts of memory and storage.
According to technology research firm IDC, manufacturers have been shifting production towards higher-value memory products for AI and data centres. That has restricted the supply available for consumer electronics and helped drive prices upwards. IDC’s memory shortage analysis.
Even if you never use AI yourself, the infrastructure being built to support it can affect the price of your next computer.
Memory and storage: what’s the difference?
Two important components are caught up in this pressure:
RAM is your device’s working memory. It helps keep applications running and lets you switch between tasks.
Flash storage, used in SSDs and many portable devices, holds your files, applications and operating system.
These components appear in laptops, desktop computers, phones and many other electronic products.
When their costs rise, manufacturers must decide how much to absorb, how much to pass on, and whether to change the specifications of the products they sell.
How big are the increases?
In March 2026, research firm Omdia reported that the cost of mainstream PC memory and storage configurations had risen by between US$90 and US$165 since the first quarter of 2025.
Omdia said this was pushing computer manufacturers to raise prices, reduce promotions and adjust configurations. Those figures describe manufacturers’ component costs, rather than a fixed increase you should expect on every New Zealand price tag. Omdia’s market outlook.
The pressure has continued. At the end of September, TrendForce forecast further increases in memory contract prices during the final quarter of 2026, with suppliers continuing to prioritise server products. TrendForce’s September update.
A familiar price can hide a different specification
Higher costs don’t always appear as a bigger number on the shelf.
A manufacturer may keep a product near a familiar price point while changing what is included. That makes it especially important to compare the actual specifications.
Before buying, check:
How much RAM is included?
How much SSD storage do you get?
Can either be upgraded later?
Does the screen suit the work you do?
What warranty and support are included?
Two laptops with similar names and prices can offer quite different value.
Will waiting make things cheaper?
There may still be discounts, clearance models and good individual deals. However, a sale does not necessarily mean the underlying component shortage has ended.
In its June outlook, IDC expected memory supply pressures to persist through 2027. That is a forecast, rather than a promise about future prices, but it gives buyers a reason to be cautious about assuming everything will soon return to previous price levels. IDC’s June outlook.
If your current computer does everything you need, keeping it running may be sensible. If it is unreliable or no longer supports a suitable operating system, waiting indefinitely can bring its own costs.
Could repairing or upgrading be better value?
Before replacing a computer, it is worth finding out what is actually holding it back.
Depending on the model and condition, a battery replacement, repair or carefully chosen upgrade may extend its useful life. However, upgrades are affected by component pricing too, and some devices have memory or storage that cannot be replaced.
The decision should consider the whole computer: its reliability, performance, software support and the cost of the proposed work.
Buy for what you need
With prices under pressure, choosing suitable equipment matters more than ever.
Buying too little can leave you replacing it sooner. Paying for features you will never use can stretch the budget unnecessarily.
At iFix Computers, we can help you compare your options, assess whether your existing computer is worth repairing, and choose equipment that suits your needs and budget.