Why Are Computers Getting More Expensive in 2026? What’s Causing the Price Increases and What to Expect

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If you’ve recently gone shopping for a new computer, laptop, or even just a RAM upgrade, you’ve probably noticed something alarming — prices have gone up significantly. What was a $1,500 laptop six months ago might now cost $1,800 or more, and the price of a simple memory upgrade has more than doubled in some cases. You’re not imagining it, and it’s not just one retailer trying to gouge customers. Computer prices across the board are rising in 2026, and the reasons behind it affect everyone from home users to large businesses.

why are computers more expensive 2026 price increases explained

This isn’t a temporary blip or a short-term supply hiccup. Multiple forces are converging at the same time to push the cost of computers and components higher than they’ve been in years. From a global memory chip shortage driven by the artificial intelligence boom, to international trade tariffs disrupting supply chains, to the end of Windows 10 support forcing millions of upgrades — the perfect storm hitting the PC market in 2026 is unlike anything we’ve seen since the pandemic-era chip shortages.

Understanding what’s driving these price increases can help you make smarter purchasing decisions — whether you’re a home user looking to replace an ageing laptop, a small business planning an IT refresh, or simply trying to figure out the best time to buy. Here’s a breakdown of exactly what’s happening, why it’s happening, and what Australian computer buyers can expect for the rest of 2026.

The Global Memory Shortage: AI Is Eating Your RAM

The single biggest factor driving computer prices higher in 2026 is a global shortage of memory chips — specifically DRAM (the RAM in your computer) and NAND flash (used in SSDs and storage drives). This shortage has been building since late 2024 and has accelerated dramatically through 2025 and into 2026.

The root cause? Artificial intelligence. The explosive growth of AI services like ChatGPT, Google Gemini, Microsoft Copilot, and countless others has created enormous demand for specialised memory chips — particularly High Bandwidth Memory (HBM) — used in the powerful GPUs and servers that run AI data centres. Companies like NVIDIA, Google, and AMD are consuming vast quantities of memory to build out AI infrastructure, and memory manufacturers like Samsung, SK Hynix, and Micron have been prioritising production of these higher-margin AI components over standard consumer memory.

The result is a supply squeeze on the memory that goes into everyday computers, laptops, and smartphones. Analysts at Omdia predicted DRAM costs would climb 50 per cent in the first quarter of 2026, despite mainstream PC memory and storage costs having already risen 40 to 70 per cent through 2025. Research firm TrendForce forecast in early 2026 that conventional memory chip prices could rise by up to 95 per cent quarter-over-quarter.

This isn’t just affecting PC builders buying individual RAM sticks. Major PC vendors including Lenovo, Dell, HP, Acer and ASUS have all warned of 15 to 20 per cent price hikes as cost pressures intensify into the second half of 2026. When the cost of a core component doubles, that increase flows through to every finished product that contains it.

RMIT University research fellow Oleg Zendel explained that producing more AI-grade memory has effectively cannibalised consumer RAM on existing production lines, with bottlenecks tied to limited cleanroom space and fabrication facilities. Expanding manufacturing capacity requires massive investment and takes years — meaning this shortage isn’t going away quickly.

How Bad Is It in Australia?

Australian consumers are feeling the pinch firsthand. In January 2026, the cheapest 32GB DDR5 RAM kits available in Australian retailers like Centrecom, PCCG, and Scorptec surged 38 per cent in a single month, jumping from around $499 to $689. That’s for a basic memory kit that would have cost under $200 just a couple of years ago.

Graphics card prices have also climbed. The average price for the cheapest RTX 5090 cards in Australia rose 15.2 per cent in just two months, from $4,832 in November 2025 to $5,566 in January 2026. Even mid-range GPUs have seen steady increases.

Micron, one of the world’s largest memory producers, announced in late 2025 that it would exit its Crucial consumer memory business entirely, choosing instead to focus on supplying its larger data centre customers. When one of the biggest consumer RAM brands exits the market, it further tightens supply and leaves fewer options for everyday buyers.

For Australian businesses planning IT refreshes or equipment purchases, the message from the industry is clear: prices are heading higher, not lower, for the foreseeable future. Sue Keay, director of the UNSW AI Institute, noted that consumer device prices are only likely to rise over the coming years until memory supply can catch up with demand — assuming no further disruptions to supply chains.

US Tariffs and Trade Wars Are Making Everything More Expensive

While the memory shortage is the biggest driver, it’s not the only one. International trade tariffs — particularly those imposed by the United States — are adding another layer of cost to computers and components worldwide.

The US has imposed steep tariffs on imports from China, where a huge proportion of the world’s electronics are manufactured. Industry analyst Jack Gold noted that many PC components come from overseas suppliers, and PC vendors simply cannot absorb all the tariffs imposed on them. These costs inevitably get passed on to consumers everywhere, including Australia, because the global supply chain is deeply interconnected.

One industry CEO described the situation starkly: the PC industry operates on infamously low margins, meaning nobody can afford to cushion a 20 per cent tariff increase. With tariffs now affecting not just China but also manufacturing hubs like Vietnam, Taiwan, Japan, and South Korea — countries that produce critical components like SSDs, memory chips, and displays — there’s virtually no part of a computer that’s immune from increased costs.

Even though Australia isn’t directly imposing these tariffs, we feel the effects because global component pricing is set on world markets. When it costs more to manufacture and ship a laptop from a factory in China or Taiwan, that increased cost is reflected in the price tag at your local Australian retailer or online store.

Analysts have warned that restrictions on rare earth materials will also impact the production of memory chips, with memory expected to be the first and hardest hit, followed by storage and then smaller incremental increases in displays and other components.

Windows 10 End of Life Is Forcing Millions to Upgrade

Adding fuel to the fire is the end of support for Windows 10, which Microsoft officially ended in October 2025. This means Windows 10 no longer receives security updates, leaving hundreds of millions of computers worldwide increasingly vulnerable to cyber threats.

For many users and businesses, upgrading to Windows 11 isn’t simply a matter of installing new software. Windows 11 has stricter hardware requirements — including TPM 2.0 (Trusted Platform Module), Secure Boot, and specific processor generations — which means many older computers simply cannot run it. This is forcing a wave of hardware purchases at the worst possible time, as millions of people need new computers just as prices are climbing.

The timing of the memory shortage creates what industry analysts call a perfect storm for the PC industry, colliding with the Windows 10 end-of-life refresh cycle and the push for AI-capable PCs. Microsoft’s new Copilot+ PCs, designed to run AI features locally, require a minimum of 16GB of RAM — and many higher-end models ship with 32GB or more — at precisely the moment when RAM has become scarce and expensive.

This convergence of mandatory upgrades and rising hardware costs puts consumers and businesses in a difficult position: delay upgrading and accept the security risks of running an unsupported operating system, or pay significantly more than they would have just a year ago for a new machine.

The Rise of AI PCs Is Pushing Specs (and Prices) Higher

Beyond the supply-side pressures, there’s also a demand-side shift happening. Computer manufacturers are pushing hard to sell “AI PCs” — laptops and desktops with dedicated Neural Processing Units (NPUs) designed to run AI workloads locally on your device, rather than relying entirely on cloud servers.

These AI capabilities require more powerful hardware, which naturally costs more. AI PCs typically come with more RAM (16GB minimum, often 32GB), faster processors with built-in NPUs, and larger SSDs to handle AI models and data. While these features offer genuine benefits — like real-time language translation, smarter photo editing, and enhanced voice assistants — they also push the baseline price of a “standard” new computer higher.

The shift toward AI-capable hardware is delaying true AI PC experiences for mainstream buyers, limiting mass-market adoption, and forcing vendors to either raise prices or reduce specifications to protect their margins.

For everyday users who just need a computer for web browsing, email, document editing, and video calls, the increasing focus on AI features means it’s becoming harder to find affordable, no-frills computers that simply do the basics well. CPU and memory shortages, tariffs, and the focus on higher-end devices are making low-cost laptops with decent performance nearly impossible to find.

What Should You Do? Practical Advice for 2026

Given all these pressures, what’s the smartest approach for Australian computer buyers in 2026? Here are some practical tips.

If you need a computer now, don’t wait. The consensus among industry analysts is that prices are more likely to go up than down over the coming months. Major vendors have warned of 15 to 20 per cent hikes from the second half of 2026, making the current window potentially the best time to buy before further increases hit. If your current computer is failing or unsupported, delaying the purchase is unlikely to save you money.

Consider upgrading your current computer instead of replacing it. If your existing computer is still in reasonable shape but just feels slow, targeted upgrades can extend its life significantly at a fraction of the cost of a new machine. Adding an SSD if you’re still on a hard drive, or upgrading RAM (if you can find it at a reasonable price), can make a noticeable difference. A professional technician can assess whether your current machine is worth upgrading or if it’s time for a replacement.

Don’t overbuy on specs you won’t use. While AI PCs are the shiny new thing, most home users and small businesses don’t need a dedicated NPU or 32GB of RAM right now. A well-specced machine with 16GB of RAM and an SSD will handle everyday tasks — including video conferencing, web browsing, office work, and light photo editing — perfectly well for years to come.

For businesses: plan your IT budget now. If you’re managing a fleet of computers for your business, factor in higher hardware costs for the rest of 2026 and potentially into 2027. Consider staggering your upgrades rather than replacing everything at once, and explore options like refurbished business-grade computers (such as ex-lease Dell or HP machines) which can offer excellent value.

Prioritise security regardless of your hardware plans. If you’re still running Windows 10 and can’t afford to upgrade your hardware right now, make sure you have robust antivirus software, keep your applications updated, and consider using a modern, supported browser as your first line of defence. While running an unsupported operating system carries risks, good security practices can help mitigate them in the short term.

How Long Will This Last?

Unfortunately, there’s no quick fix on the horizon. According to Gartner analyst Ranjit Padhi, the supply constraint on memory components is structural and persistent, not cyclical, and may last well into 2027. Expanding memory manufacturing capacity takes years of investment in specialised facilities, and as long as AI demand continues to grow at its current pace, consumer memory will remain under pressure.

IDC, one of the world’s leading technology research firms, has warned that 2026 is shaping up to be a year in which technology becomes more expensive, driven by supply constraints rather than demand growth. Their analysis suggests the severity and duration of the shortage depends on how quickly production capacity can expand and how effectively demand rebalances across segments.

The trade tariff situation also remains volatile and unpredictable. Tariff policies can change rapidly depending on political negotiations, and the uncertainty itself is harmful — manufacturers struggle to plan and price products when the cost of importing components could shift dramatically from one quarter to the next.

The best-case scenario is that memory manufacturers begin bringing new capacity online in late 2026 or early 2027, and trade negotiations stabilise tariff rates. But even in this optimistic scenario, a return to the low component prices of 2023-2024 is unlikely in the near term.

Need Help Navigating the Current Market?

Whether you’re a home user trying to decide between upgrading your current computer or buying new, or a small business needing to plan an IT refresh in a challenging market, having expert advice can save you time and money.

The Original PC Doctor has been helping Australians with their technology needs since 2001. Our experienced mobile technicians can come to your home or office, assess your current setup, and give you honest, practical advice on the most cost-effective path forward — whether that’s a targeted upgrade to extend the life of your existing computer, help selecting the right new machine for your needs and budget, or migrating from Windows 10 to Windows 11.

We service all major Australian cities and regional areas, and we understand that in today’s market, getting the most out of your technology investment matters more than ever. Contact us today for a no-obligation consultation.

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Written by The Original PC Doctor on 17/2/2026.

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