Why Are Tech Prices Going Up?

If you have shopped for a new laptop, phone, SSD or game console lately, you have probably noticed the price tag is higher than it was a year ago. You are not imagining it. In 2026, Australians are paying more for almost every kind of device, and in many cases the cheaper models have quietly disappeared from the shelves altogether.

The main reason is not local retailers marking things up. It is a global shortage of memory and storage chips, driven by the enormous build-out of artificial intelligence (AI) data centres. This guide explains, in plain English, why tech prices are going up, what it means for households and businesses in Melbourne and across Victoria, and how to get the most value out of the equipment you already own.

The short version: AI is eating the memory supply

Every modern device relies on two kinds of memory chip. DRAM (the RAM in your computer or phone) holds data while apps are running, and NAND flash stores your files, photos and apps on an SSD or phone storage. For years, supply of these chips roughly kept pace with demand, and prices went up and down in a fairly predictable cycle.

AI changed that. Unlike traditional software, AI tools such as ChatGPT, Gemini and Copilot run on massive fleets of servers packed with GPUs, high-bandwidth memory and fast storage. Large technology companies are buying these components in enormous volumes to build new data centres, and they are prepared to pay a premium to secure supply.

Almost all of the world’s memory is made by three companies: Samsung, SK hynix and Micron. When a small group of suppliers can earn far more by making AI memory, they shift factory capacity towards it. Building new chip factories takes years, so the supply for everyday laptops, desktops and phones shrinks in the meantime. Micron even announced in late 2025 that it would wind down its Crucial consumer memory brand to focus on data centre customers, which removed one of the best-known consumer RAM and SSD brands from the market.

The result is simple supply and demand. Less memory is available for consumer devices, so the memory that is available costs a lot more, and those costs flow through to the price you pay at the checkout.

How much more are devices costing?

Forecasts vary between research firms, but they all point in the same direction. Research firm Gartner has forecast memory prices rising by around 130% by the end of 2026, which it expects to push average PC prices up about 17% and smartphone prices up about 13% compared with 2025. Gartner also expects memory to climb to roughly 23% of a PC’s total component cost, up from about 16% in 2025, which leaves manufacturers very little room to absorb the increase.

Major PC makers including Lenovo, Dell, HP, Acer and ASUS have warned of double-digit price increases on systems this year. Australian shoppers have felt it directly in the component market too. Local price tracking showed the cheapest 32GB DDR5 RAM kits at Australian retailers jumping roughly 38% in a single month in January 2026, and memory upgrades that cost under $200 a couple of years ago now cost several times that.

It is not just laptops

Because the same memory and storage chips sit inside so many products, the shortage shows up almost everywhere. Game consoles have been hit hard: Nintendo raised the US price of the Switch 2 in 2026 and pointed to higher memory costs, while Sony and Microsoft also increased console prices during the year. Smart TVs, routers, cameras and even some household appliances contain memory chips as well.

Cloud services are changing too. Running AI workloads takes a huge amount of computing power, and cloud providers cannot absorb those costs forever. In many cases, AI features are now bundled into higher-priced tiers or new licensing plans, so businesses may notice the cost of software and cloud storage creeping up even if they never buy new hardware.

The hidden price rise: tech “shrinkflation”

Not every price rise shows up on the sticker. To keep familiar price points like $799 or $999, some manufacturers are cutting specifications instead. You might see a laptop at the same price as last year, but with 8GB of RAM instead of 16GB, a smaller SSD, or a slower processor.

This matters because a device with too little memory can feel slow within a year or two as Windows, macOS and everyday apps become more demanding. Buying the cheapest option with minimum specs can end up costing more in the long run, because you replace it sooner. Our guide to choosing the right laptop explains which specifications are worth paying for and which are not.

What it means for Australian buyers

Australia imports almost all of its consumer electronics, so local prices follow global component costs, freight and currency movements. When memory prices rise overseas, the new stock that reaches Australian shelves carries those higher costs. Retailers may also run fewer big discounts if replacement stock costs more than the stock they already have.

For everyday users in Melbourne, Brisbane, Sydney and beyond, this means the old habit of replacing a device as soon as it slows down is now much more expensive. It is worth asking a knowledgeable technician whether your current computer can be repaired or upgraded before you spend money on a replacement. Our comparison of laptop repair vs replacement walks through how to make that decision.

How to save money while prices are high

You cannot control global chip markets, but you can make smarter decisions about the technology you use. These are the most effective ways to stretch your budget in 2026.

1. Upgrade instead of replacing

For many computers, the biggest performance boost comes from replacing an old hard drive with a solid-state drive (SSD). An SSD upgrade can make a five-year-old computer boot and open programs dramatically faster, often for a fraction of the cost of a new machine. Adding RAM can also help if your computer has upgradeable slots. Learn more about the typical cost of an SSD upgrade, or book our computer upgrade service and laptop RAM upgrade service to have it done properly.

2. Repair common faults early

A worn battery, broken hinge, cracked screen or faulty keyboard does not mean a laptop is finished. These repairs are usually far cheaper than a replacement, especially now. Our computer repairs team fixes all major brands, and our laptop battery replacement service can bring an older machine back to all-day use.

3. Do not ignore battery and overheating Health Hazards

Keeping an old device going is smart, but not at any cost. A swollen lithium-ion battery is a genuine fire and safety risk, and one of the real Health Hazards of running ageing electronics. If your laptop case is bulging, the trackpad is lifting or the device gets unusually hot, stop using it and have it checked. Read what happens if a laptop battery swells for the warning signs.

4. Give your computer a tune-up

Many “my computer is too old” complaints are really software problems: startup programs, malware, a full drive or dust-clogged cooling fans. A professional PC tune-up or computer cleaning service can restore lost speed without replacing anything. You can also try the steps in our guide on how to speed up an old computer.

5. If you need to buy, buy the right spec once

If your device genuinely needs replacing, waiting may not save you money in the short term, because most forecasts suggest prices will stay high for a while. Buy a well-specified machine that will last, rather than the cheapest model that will need replacing in two years. Our equipment consultation service gives you independent advice based on how you actually use your computer.

6. Be wary of deals that look too good

Rising prices create opportunities for scammers. Fake online stores and marketplace sellers often advertise laptops and consoles well below the going rate. If a price looks impossible, it probably is. Our guide to spotting fake sellers and online shopping scams explains what to look for.

Tips for businesses planning an IT refresh

For a business replacing 10, 20 or 50 computers, a double-digit price rise quickly adds up to thousands of dollars. Delaying upgrades and budgeting based on last year’s prices is risky, because it can lead to rushed, lower-quality purchases later. A better approach is to plan ahead:

• Know what you have. An up-to-date list of every device, its age, warranty and condition makes it easier to decide what to upgrade, repair or replace. Our IT asset management service can build and maintain that list for you.
• Stagger replacements. Replace the oldest or most critical machines first rather than refreshing everything at once.
• Upgrade where it makes sense. Business desktops with upgradeable parts can often be extended with SSD and hard drive upgrades.
• Review subscriptions. Check Microsoft 365, cloud storage and software licences for unused seats or features before renewals increase.
• Buy through a trusted adviser. Our hardware and software purchasing service helps businesses source the right equipment at the right time.

If you would rather have an expert manage all of this, managed IT services give you proactive monitoring, lifecycle planning and support for a predictable monthly cost. Our article on how much managed IT services cost explains what to expect.

Will tech prices come down?

Eventually, probably, but not quickly. Chip makers are building new factories, but that capacity takes years to come online, and demand for AI infrastructure is still growing. Some analysts expect gradual relief from 2027, while others warn the pressure could last much longer. Gartner has even suggested the sub-$500 entry-level PC segment could disappear by 2028 because it is no longer profitable to make.

Unlike past short-term spikes caused by pandemic shutdowns, this shortage is tied to a long-term shift in how technology is built and used. The safest assumption for households and businesses is that devices will stay more expensive for some time, so looking after the equipment you already own is one of the most effective ways to save.

Why Melbourne trusts Computer Cures

Computer Cures is an established, reputable Melbourne IT company with years of experience repairing and upgrading computers for homes and businesses across Victoria. Our technicians are knowledgeable specialists who give honest advice, so if a repair is not worth it, we will tell you.

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