Electronics Prices Rise, but Experts Advise Against Buying Just Because of Increases

Apple has announced a price increase of approximately 20% on some of its products. However, according to market participants, this is only the first noticeable sign of a larger problem: a global shortage of modern microchips.

Industry estimates indicate that around 70% of all microchips produced worldwide are now directed toward infrastructure related to artificial intelligence. Production capacity is struggling to keep up with demand, and building new factories takes three to five years.

Price increases began well before Apple's announcement. As early as the middle of the first quarter, Dell, HP, and Lenovo started raising prices. Over the past year, DDR4 memory has roughly doubled in price, while DDR5 has nearly tripled.

"No manufacturer today sets prices for the long term – at most for a month ahead, after which they are reviewed again. Therefore, buyers should primarily consider their real needs. If equipment really needs replacing, it should be replaced. But buying devices just out of fear of further price increases is not advisable," said Asko Pukk, Head of Sales at Telia.

The shortage has already affected more than just memory. Server components, laptops, and computers are becoming more expensive, and the cost of some parts has multiplied. The reason is not only a lack of chips themselves. Manufacturers are gradually shifting production capacity toward the most profitable components for servers. As a result, fewer resources are available for producing ordinary electronics, and component costs continue to rise.

"New memory manufacturers are emerging on the market, but this cannot change the situation quickly. Launching new production lines requires huge investments and several years of construction. Only after that can production volumes increase significantly," said Tõnis Lind, Head of Development at Arvutitark.

Experts outline two scenarios that could slow the price rise. The first is a slowdown in the construction of data centers for artificial intelligence, but there are almost no signs of weakening demand here. The second option is the opening of new factories by major memory manufacturers, including Samsung and SK Hynix. According to forecasts, this will not happen before 2028.