News
Rising AI demand fuels fears of higher laptop and console prices
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.
Local Government
Independent group threatens to oppose council tax plans over education cuts
Councillors demand £2m savings removed amid safeguarding concerns in schools
THE INDEPENDENT GROUP on Pembrokeshire County Council has warned it will not support the Cabinet’s proposed council tax increases unless planned reductions to the education budget are reversed.
Cabinet has recommended a council tax rise of 4.6% for 2026/27, followed by 5% the following year and potential increases of up to 7.5% in future years. The Independent Group has criticised the proposals, describing them as a “ballot box” budget which they claim postpones difficult financial decisions for future administrations.
The group also said it had not been consulted during the budget process by Council Leader Jon Harvey, despite representing a significant number of councillors.
Safeguarding concerns raised

Councillor Huw Murphy said the group’s main concern relates to education funding, particularly following the recent placement of three Pembrokeshire schools into special measures.
He said: “The seriousness of the situation facing education in Pembrokeshire cannot be overstated. All councillors need to place school safeguarding above party politics.”
The Independent Group argues that reducing the education budget by more than £2 million would be inappropriate at a time when schools face financial pressures and scrutiny from inspectors.
The councillors have called for the proposed savings to be reinvested to help improve standards at Ysgol Harri Tudur, Milford Haven School and the Pembrokeshire Learning Centre in Neyland, as well as addressing wider infrastructure concerns including building maintenance issues at several schools across the county.
Budget pressures acknowledged
The group acknowledged efforts by the council’s finance leadership to achieve savings, noting projections that the authority could finish the financial year under budget.
However, Councillor Murphy questioned whether some efficiencies may have affected services, including education provision and safeguarding.
He also highlighted that councillors had previously reduced proposed education cuts during last year’s budget process following cross-party support.
Political tensions
The statement also criticised the position of councillors from other parties, questioning whether Labour and Plaid members would support reductions in education spending given the current challenges facing schools.
It further referenced previous proposals from Liberal Democrats councillors for higher council tax increases to protect school funding, suggesting the current position appeared inconsistent.
The Independent Group says it will only support the budget if education cuts are removed, placing what it describes as safeguarding, wellbeing and educational attainment as its priority.
The Herald has approached Pembrokeshire County Council for comment.
Community
Smiles all round for Pancake Day celebrations in Tenby
TENBY was filled with laughter, cheers and the smell of freshly cooked pancakes on Tuesday (Feb 17) as the town’s annual pancake races brought residents and visitors together for a day of family-friendly fun.
The much-loved tradition, held to mark Shrove Tuesday, saw competitors of all ages take to the streets armed with frying pans, attempting to race while flipping pancakes without dropping them. Spectators lined the route in good spirits, many wrapped up against the chilly weather, as children, families and local groups took part.

Among the highlights were enthusiastic young racers proudly showing off their pancake-flipping skills, with some managing impressive mid-air flips while others focused on simply reaching the finish line with their pancake still intact. The event created plenty of memorable moments for families watching and taking part.
RNLI volunteers also joined the celebrations, bringing colour and community spirit to the occasion in their distinctive yellow gear, alongside a mascot character who proved popular with children.

The races form part of Tenby’s traditional Shrove Tuesday celebrations, which continue to be an important date in the town’s community calendar. Organisers said the event is designed to bring people together, celebrate local traditions and create a fun experience for families during the school half-term period.

Younger participants also took to the course in dedicated children’s races, many concentrating hard as they carefully balanced their pancakes while moving along the route under the watchful eyes of parents and marshals.
With smiles all round and plenty of successful pancake flips, the event once again proved why Tenby’s pancake races remain a cherished annual tradition for the community.

Photos: Gareth Davies / Herald.
Crime
Teen given community order after assaulting police officer at hospital
A TEENAGER from Neyland has been given a community order after admitting assaulting a police officer at Withybush Hospital.
Luke Davies, aged 18, of Springfield Avenue, Neyland, appeared before Haverfordwest Magistrates’ Court on Monday (Feb 16) for sentencing.
The court heard that on July 9, 2025, at Withybush General Hospital, Haverfordwest, Davies assaulted PC Elliot Jamie Williams while the officer was acting in the execution of his duty. The offence is contrary to section 89(1) of the Police Act 1996.
Davies had previously pleaded guilty to the charge on January 6, 2026.
Magistrates imposed a community order running until August 15, 2027. The order includes participation in drug rehabilitation and alcohol treatment programmes for six months, both to be carried out as directed by probation, along with regular court reviews.
He must also complete up to 20 days of rehabilitation activity requirements.
Davies was ordered to pay £200 compensation and £85 prosecution costs.
The case will return to Haverfordwest Magistrates’ Court for review on March 16 at 10:00am.
-
Health6 days agoHealth Board to decide future of nine key services at two-day meeting
-
Crime4 days agoFour arrested in armed police operation across Pembroke Dock
-
Business9 hours agoMS’s host business advice surgery following demand from Business Rates Online Forum
-
Community2 days agoHywel Dda hospital services decisions will be made next week
-
Crime7 days agoPublican admits supplying cocaine and cannabis at Crown Court
-
Education4 days agoSchool in special measures after inspectors raise safeguarding and leadership concerns
-
Climate7 days agoPlans for £40m Newgale coastal road upgrade put on hold
-
Community3 days agoSecond Milford Haven webcam launched after 1.3m views and US TV feature









