Name: AI may be reason for increase in tech product prices
Uploaded: 2025-12-19T19:37:45.520Z
Duration: 2 min 3 s
Description: Scripps News Group consumer reporter Jane Caffrey shows why AI may be the cause of skyrocketing prices for technology products like phones and computers.

Scripps News Group consumer reporter Jane Caffrey shows why AI may be the cause of skyrocketing prices for technology products like phones and computers.

Rising prices for consumer electronics such as laptops, tablets, and phones are being attributed to the growing demand for memory in data centers fueled by artificial intelligence. Experts and shoppers report that manufacturers are prioritizing contracts with AI companies, which is making it more expensive for consumers to upgrade or purchase new devices.

Economists compare the current situation to the pandemic-era chip shortage and predict continued price increases in the tech market. Some suggest buying pre-owned electronics or taking advantage of current sales, while others advise caution due to potential scams in the third-party market. Many consumers are choosing to delay upgrades, acknowledging that AI-driven price hikes may persist.

AI may be reason for increase in tech product prices

If you're in the market for a new laptop, tablet or phone, have you noticed that the prices are going up? It could be due to a tool that many of us use every day. AI were speaking to experts about how consumers can best combat those rising costs. Tech shoppers in Phoenix are bracing for costs to soar. It's about to get really, really bad. Some say they're already seeing prices climb when the price used to be 100 right now. 100 right now it's 1000 for the same RAM. It's all because of AI's explosive growth. Thanks to AI, there's huge demand for memory in data centers, and that's driving up the price of RAM. Probably manufacturers are focusing more given those contracts to those companies that are making AI, but it's making it expensive for shoppers to upgrade their consumer electronics from computers to tablets to phones. That's a lot of things now. Could be a washing machine, could be an automobile. Chips in it now. Economist Dennis Hoffman says this is similar to the pandemic era chip shortage when electronics, appliances, and cars spiked in price. Hoffman predicts it will ripple across the tech market going into the new year. The lesson here might be if you're looking for a last minute Christmas gift and you find consumer electronics on sale and that's what you want to do, that might not be a bad idea. At the Tempe tech store, the Apple Exchange owner Alan says stores like this that sell pre owned products offer a solution. You're not buying that memory news, so the price of these computers aren't going up any so often we see anywhere from 40 to 70% savings. It's an idea some shoppers welcome. The third party market is going to save people a lot of money and headache right now. Just be aware that there's a lot of scams. Others are simply holding off. I mean, you cannot upgrade until we have to wait until the prices come down. You decide tech shoppers are aware. AI is here to stay and so are these price hikes for Scripps News Group. I'm Jane Kaffrey.

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