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Rising AI demand fuels fears of higher laptop and console prices

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Experts warn memory costs could increase, but analysts say wider market forces also at play

A SURGE in global demand for advanced computer memory — driven in part by rapid AI expansion — is raising concerns that laptops, consoles and smartphones could become more expensive in the months ahead.

Industry observers say one factor is a series of major supply agreements involving OpenAI’s “Stargate” project and South Korean manufacturers Samsung Electronics and SK Hynix, which produce much of the world’s high-performance memory. Reports suggest the deal covers hundreds of thousands of chips per month, though the exact proportion of global output remains disputed.

Some experts argue the increased competition for components is already pushing up prices. Others caution that the situation is more complex, with global supply chains, cyclical semiconductor markets and post-pandemic production shifts also contributing to cost pressures.

Memory prices rising — but reasons vary

Several tech companies have reported steeper wholesale costs. According to the open-source tech community around self-build manufacturer Framework, memory modules that were around £100 in late summer are now retailing for several hundred pounds. Framework temporarily delisted its standalone memory kits, citing concerns about scalpers reselling them at inflated prices.

Higher memory requirements in modern phones — with many Android models now starting at 8GB or more — mean manufacturers face difficult decisions about absorbing the cost or passing it on at the till.

Analysts note that memory prices were already forecast to rise after a prolonged slump, with chipmakers gradually winding down production in 2023–24 following weak global PC sales. That has tightened supply even before AI-related demand is factored in.

Small businesses and consumers feel exposed

Colette Mason, an author and AI consultant at Clever Clogs AI, warned that the people most affected will be those who rely on affordable tech.

She said: “We’ve been told AI will democratise everything. But if essential hardware jumps in price, the people hit hardest are students, small business owners and pensioners who simply need a working laptop. It doesn’t feel very democratic when core components suddenly cost several times more.”

Rohit Parmar-Mistry, founder of Burton-on-Trent data firm Pattrn Data, said rising memory costs risk becoming a “quiet tax” on UK businesses.

“A 300% increase in a single component doesn’t just affect gamers,” he said. “It affects every company that needs to refresh equipment. If hardware becomes a luxury item, then AI tools have to start delivering real value rather than hype.”

Other experts say consumers may have options

Not everyone believes the public will be forced into steep upgrades.
Mitali Deypurkaystha, an AI strategist, said many people can avoid paying inflated prices altogether.

“Most AI runs in the cloud,” she said. “You don’t need the newest memory to use ChatGPT. If consumers choose refurbished or older components instead of paying top-end prices, chipmakers will feel that pressure. We’re not entirely powerless.”

Chipmakers yet to respond directly

OpenAI referred Newspage to earlier comments by CEO Sam Altman, who said Korea had the talent and infrastructure to be a “global leader in AI” and praised collaboration with Samsung, SK Hynix and the Korean government.

Samsung and SK Hynix — the two dominant memory producers — have not commented publicly on the reported long-term allocation agreements. Industry analysts say it is common for manufacturers to prioritise high-value enterprise clients during supply squeezes, but warn that consumer-level disruption depends on how quickly production capacity ramps up in 2025–26.

A price rise — but how steep?

Despite strong warnings from consultants, economists say it is too early to know whether UK consumers will face increases as high as “£300 more”, because:

  • Manufacturers may absorb part of the cost
  • Retailers often buy components months in advance
  • Prices could stabilise if chipmakers expand output
  • The worst spikes tend to occur in niche or high-performance modules

However, all agree that AI’s appetite for hardware is now a major force shaping the global tech market, and that ordinary consumers are likely to feel at least some impact.

 

international news

UK considers military options as pressure grows to secure Strait of Hormuz

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Ministers confirm talks with allies after Donald Trump calls on Britain to help protect vital oil shipping route

THE UK GOVERNMENT is examining “all options” to help secure the Strait of Hormuz as tensions in the Middle East threaten one of the world’s most important oil routes.

Energy Secretary Ed Miliband said Britain is already in discussions with allies, including the United States, about how to restore safe navigation through the narrow shipping corridor, through which around one fifth of the world’s oil supply passes.

Speaking on BBC One’s Sunday with Laura Kuenssberg, Miliband said reopening the strait was a global priority but stressed the government favours de-escalation rather than military confrontation.

“It is very important that we get the Strait of Hormuz reopened,” he said. “We are in talks with allies about how to secure that key shipping route. Any options to help the Strait reopen are being looked at.”

Ed Miliband: Reopening the strait is a global priority

The comments come after US President Donald Trump called on several major powers — including the UK, France, Japan, South Korea and China — to send warships to the region to ensure the vital oil corridor can no longer be threatened by Iran.

The escalating conflict between the US, Israel and Iran has already led to attacks on shipping in the Gulf, raising fears that Tehran could attempt to block or severely disrupt the strait.

Political divisions in Westminster

The prospect of British military involvement has exposed sharp political divisions in Westminster.

Shadow energy secretary Claire Coutinho said the UK should explore deploying ships or surveillance drones to the region if doing so would protect Britain’s national interests.

She argued that keeping international shipping lanes open and protecting military assets abroad was vital for global stability and the UK economy.

However, Liberal Democrat leader Ed Davey warned Britain should not automatically follow Washington into another conflict.

He said the quickest way to stabilise oil markets and secure the route was through diplomatic de-escalation rather than military intervention.

Davey also criticised President Trump’s approach to the crisis, warning the UK should not be “at the beck and call” of an American president.

Global oil supply at risk

The Strait of Hormuz is widely regarded as one of the most strategically important shipping routes in the world.

Bounded by Iran to the north and Oman and the United Arab Emirates to the south, the narrow channel connects the oil-rich Gulf region to the Arabian Sea and global markets.

Around 3,000 vessels pass through the strait every month, carrying an estimated 20 million barrels of oil per day.

Any prolonged disruption could send global oil prices soaring and drive up fuel and energy costs in countries including the UK.

Government sources have warned the economic impact of the Middle East conflict could be “huge”, with ministers already examining measures to shield households and businesses from potential spikes in energy prices.

The developments are being closely watched in Pembrokeshire, home to the South Hook and Dragon LNG terminals at Milford Haven. Tankers carrying Qatari liquefied natural gas frequently pass through the Strait of Hormuz before reaching the UK, meaning any disruption in the Gulf could have implications for energy supplies and prices in Wales.

For now, the government insists diplomacy remains the preferred path — but with tensions rising and pressure from Washington increasing, Britain may soon face difficult choices about how far it is willing to go to secure the world’s most critical oil chokepoint.

 

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Local Government

Changes approved to final phase of Saundersfoot housing scheme

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Affordable housing proportion rises as apartment plans replaced with family homes

AMENDMENTS to the final phase of a housing development in Saundersfoot have been approved, reducing the overall number of homes while increasing the proportion of affordable properties on the site.

Morgan Construction (Wales) Limited, through agent Evans Banks Planning Limited, sought permission to reconfigure the third phase of a residential development at Whitlow, Narberth Road, Saundersfoot.

The application was recommended for approval and came before members of Pembrokeshire Coast National Park’s Development Management Committee at its March meeting.

The original scheme, granted permission in 2023 and already partly built, allowed for a total of 54 homes. Under the revised proposals the number will be reduced to 47.

A planning officer’s report explained that the development is being built in phases. Phase one consists of 16 market homes, while phase two includes 19 affordable properties.

The application concerned the final stage of the project, known as phase three.

Under the original consent, phase three would have delivered 19 one- and two-bedroom apartments located in the centre of the site. However, the revised plans replace those flats with a mix of houses.

The new layout will include two three-bedroom detached houses, three two-bedroom detached bungalows, four two-bedroom terraced townhouses and three three-bedroom terraced townhouses.

This change reduces the number of homes in phase three from 19 apartments to 12 houses.

Although the number of affordable homes across the development will remain unchanged, the reduction in market housing increases the proportion of affordable properties on the site from 35.1 per cent to 40.4 per cent.

The applicants told planners that demand for the previously approved apartments had been limited. They said there was already a considerable supply of such properties in the lower part of Saundersfoot, while demand locally appeared stronger for homes suited to young families and for older residents wishing to downsize into smaller bungalows.

The report added that without the changes the final phase of the development could remain unbuilt, leaving future residents living on a partially completed site.

Committee members agreed to grant delegated approval to planning officers, subject to the completion of legal agreements covering planning obligations.

These include provisions to secure the affordable housing in perpetuity, along with financial contributions towards library services, recreational open space and sustainable transport.

 

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Local Government

Appeal after Tenby harbour RNLI building takeaway refused

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AN APPEAL has been lodged against the refusal of plans for a takeaway food kiosk at a former lifeboat store in Tenby’s seaside harbour, despite planning officers recommending the scheme for approval.

Last March, members of the Pembrokeshire Coast National Park Authority development management committee rejected proposals to site a takeaway food kiosk at the former RNLI lifeboat store at Penniless Cove, Tenby Harbour.

The application, submitted by Ruby Goodrick, sought permission to convert the old store into a takeaway cold food outlet operating seven days a week from 10:00am to 10:00pm.

The scheme came before councillors rather than being determined under delegated powers after Tenby Town Council objected to the proposal.

Despite the objection, planning officers recommended the scheme for approval, even though it represented a departure from the adopted development plan.

An officer report said: “Whilst it is acknowledged that the proposed use would introduce a retail element to this area of the harbour, on balance officers consider that no significant harm would be caused to the character of Tenby Harbour as a result of this development.

“The use proposed occupies a relatively small floor area and would not be a destination in and of itself. Rather, it would rely on the existing footfall within the harbour.”

Speaking at the meeting in March (2025), Alistair McKay, representing Tenby Sailing Club, warned the proposal could create potential conflicts with other harbour users.

The applicant told councillors she was “more than happy” to adjust the proposed opening hours. Ms Goodrick said the business would build on the success of her mother’s former sandwich shop in the town, Truly Scrumptious.

The proposed outlet, called Truly@The Harbour, would “contribute positively to the local economy,” she said.

However, committee members raised concerns including congestion in the harbour area and the handling of waste.

Members eventually voted by 12 votes to three to refuse the application.

The applicant has now lodged an appeal with Planning and Environment Decisions Wales (PEDW).

In a statement supporting the appeal, Ms Goodrick said: “The proposal is modest in scale, does not harm the retail hierarchy, is in close proximity to the town centre, and has received no objections from the majority of the statutory consultees.”

The appeal statement adds that the refusal was based on the kiosk being outside the defined town centre boundary.

However, it argues that the building is located only around 25 metres outside the retail centre boundary and would otherwise represent a use considered acceptable within the town centre.

 

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