Consumers accustomed to seeing the prices of older technology products fall over time are now facing the opposite trend, as major manufacturers increase the cost of devices that have been on the market for years.
Apple and Microsoft have become the latest companies to raise prices on products including laptops, tablets and gaming consoles, citing rising production costs driven by the growing demand for artificial intelligence (AI).
The surge in AI development has placed unprecedented pressure on the global supply of computer chips and memory components. Data centres powering AI systems require vast quantities of advanced semiconductors and random access memory (RAM), creating intense competition for supplies and driving up component prices across the technology industry.
Industry observers have dubbed the phenomenon “Ramageddon”, as RAM, once one of the cheapest components in a computer, has experienced a sharp increase in cost due to soaring demand.
Apple has increased the prices of its iPads and MacBooks by nearly 20 per cent, while Microsoft has announced another round of price hikes for its Xbox Series S and Xbox Series X consoles. The increases, which take effect in August, mark the third hardware price rise in just over a year.
Under the new pricing structure, Microsoft’s five-year-old gaming consoles will cost at least US$100 more than before, leaving them between 30 and 40 per cent more expensive than they were at the same time last year.
The repeated increases have sparked frustration among consumers, many of whom argue that ageing devices should become more affordable rather than more expensive.
”Xbox with another hardware price increase? I gotta laugh to keep from crying,” one user wrote on social media platform X. “My favourite hobby is cooked.”
Similar reactions emerged on Reddit, where one user suggested Microsoft “may as well just cancel” its rumoured next-generation console, codenamed Helix, arguing that “no one will be able to afford it”.
The latest price increases highlight how the AI race is reshaping the broader technology market. While companies continue to invest billions in AI infrastructure, the resulting demand for chips and memory is filtering through to everyday consumers, who are increasingly paying more for devices that would traditionally have become cheaper as they age.
