The cost of your next budget or mid-range smartphone from Samsung or Xiaomi is almost certainly set to jump, and you can thank the booming demand for artificial intelligence (AI) servers.
New reports from South Korea say that the price of general-purpose DRAM used in PCs and smartphones has skyrocketed over the past month due to an ongoing global memory shortage. The shortage, fueled by an AI-induced “memory super boom,” has seen manufacturers like Samsung Electronics, SK hynix, and Micron redirect production toward high-bandwidth memory (HBM) — a premium, AI-grade alternative that’s up to six times more expensive than regular DRAM.
As a result of this shift in production, the supply of general-purpose DRAM has fallen sharply, forcing manufacturers to hike prices in a move that will soon affect the global market, including here in Kenya.
Xiaomi has already made the first move
The first concrete sign of the coming price hikes comes from Xiaomi. The Chinese tech giant has already increased the price of one of its newest budget offerings in its home market.
Citing component cost pressure, Xiaomi has set the price of the Pro Max model in its low-cost K90 series at a 7.5% premium over its predecessor. This equates to a 300 yuan (approximately $60/KES 8,000) jump, with Xiaomi President Lu Weibing publicly stating they “had no choice but to reflect the pressure on component costs in the price of new products.” This is also reflected in the price of the OPPO A6 Pro 4G in Kenya, which costs KES 6,000 more than the A5 Pro it succeeded.
Given that component cost increases are global, this domestic price adjustment is a strong indication that the rising costs will soon be passed on to international consumers shopping for devices in the low to mid-range segment. Granted, I can almost certainly assure you that that Redmi Note 15 Pro you’re eyeing will cost more than the Note 14 Pro.
Samsung considers hikes on Galaxy A and M series
While Xiaomi has already acted, Samsung is now reportedly considering a price increase on its own Galaxy smartphones due to rising production expenses.
The hikes are being primarily considered for low to mid-priced phones, meaning devices in the highly popular Galaxy A- and M-series would likely bear the brunt of the increase. These phones rely heavily on general-purpose DRAM, which is currently experiencing the most severe shortage.
Interestingly, this might mean Samsung’s flagship Galaxy S series could be spared from the initial wave of memory-driven increases. However, the report also notes that even flagship devices aren’t entirely safe, as evolving AI hardware requirements are also adding cost pressures across the board.
Samsung’s memory division has already raised DRAM prices multiple times in 2025, with DDR4 and DDR5 modules jumping by as much as 20% earlier in the year, as per ETNews. Those increases were initially linked to tariffs but now appear to have been an early sign of deepening shortages.
PCs and other electronics also affected
The impact of the DRAM crunch isn’t limited to smartphones. PC builders and vendors in South Korea report that DDR5 32GB modules have more than doubled in price within a month, a 128% spike that has raised the overall cost of assembled PCs by up to 25%.
Similarly, solid-state drive (SSD) prices are rising, with Samsung’s 990 PRO 1TB SSD jumping by nearly 10% month-over-month. The shortage of both DRAM and NAND components has left many distributors unable to restock, further compounding retail price increases.
But how did we get here?
The ongoing shortage stems from the explosive growth of artificial intelligence. As tech giants like Google, OpenAI, and Microsoft race to build more powerful AI servers, demand for HBM has skyrocketed — doubling annually according to industry estimates. Since producing HBM is more profitable, memory manufacturers have reallocated much of their production capacity to AI-oriented components, leaving little room for traditional DRAM output.
Adding to the pressure, Apple has reportedly pre-ordered 13 million units of LPDDR5X DRAM from Samsung for future iPhones, further tightening the supply chain.
Industry analysts expect this “memory inflation” to last well into 2027 or 2028, until expanded DRAM production lines come online. For consumers, that means higher prices not just for flagship AI phones, but also for everyday devices like budget smartphones, tablets, and PCs.
