Chip Shortage Drives Up Phone and Laptop Prices: Here’s What You Need to Know!

Your phone is broken or your laptop is starting to stutter, and you were actually hoping to hold off on buying something new for a while. Smart move, because new phones and laptops will become more expensive in the coming years. According to Dutch news site NU.nl, the shortage of memory chips will last until at least 2028, and you can already see it in the shops. We explain what is going on, who is hit hardest and how to deal with it smartly.

In this blog, we discuss:

1. What is going on with the chip shortage?
2. Why will the shortage last until 2028?
3. What does this mean for your next purchase?
4. Which phones and laptops are hit hardest?
5. Dealing smartly with the chip shortage: what can you do?

What is going on with the chip shortage?

There is a worldwide shortage of memory: the chips for working memory (RAM) and storage that are in every phone and laptop. AI data centres are buying up those chips on a massive scale, leaving less for phones, laptops and game consoles, reports Dutch public broadcaster NOS. As a result, manufacturers pay more for their parts and pass that on in the price.

This is a different kind of shortage than during the coronavirus pandemic. Back then, factories and transport came to a standstill; now there is too little production capacity for all the demand. Working memory is what lets your apps run smoothly side by side, storage is where your photos and apps are kept. It is precisely these two components that are scarce.

Why will the shortage last until 2028?

Building a new chip factory takes years, and until that extra capacity is up and running, demand will remain greater than supply. According to the NOS, chipmaker Micron expects shortages until at least 2028. SK hynix has already sold its entire production for this year, and Samsung’s customers are already stating how many chips they will need in 2027.

According to the same article, Microsoft expects working memory to double in price again by autumn 2027. So it will get more expensive before it gets better. And it affects more than just the price: we wrote earlier about how the RAM shortage even affects the sound quality of new phones.

What does this mean for your next purchase?

A new phone or laptop will become more expensive in the coming years, and waiting for a better moment won’t help much: the shortage is expected to last until 2028. You can already see it in the shops. According to the NOS, laptops have become 50 to 200 euros more expensive, depending on their memory, and this year’s Samsung Galaxy A models cost 50 euros more than last year’s.

Many people replace their phone or laptop because the battery has worn down, the screen is cracked or it feels slow. Those are exactly the problems you can usually have fixed without a new device. A new battery or a new screen costs a fraction of a new phone and keeps it going for years.

Which phones and laptops are hit hardest?

Cheap phones and entry-level laptops are hit hardest. Margins in that segment are already small, so manufacturers can’t pass the higher memory price on to buyers. Instead, they cut back on other parts: according to research firm Omdia, cheap Android phones more often get a lesser screen, a smaller camera, an older processor or less memory than planned, writes Dutch tech site Androidworld.

You see the same with laptops. According to the NOS, manufacturers of Windows laptops sometimes fit 8 GB of working memory where there used to be 16 GB, for the same price. So when you buy something new, look closely at the specifications, not just the price tag. Androidworld also recommends looking at an older flagship: it sometimes offers better specifications for less money.

Dealing smartly with the chip shortage: what can you do?

If your device starts to stutter, you have three options: repair it, make do for a while longer, or pay the higher price of a new device. As long as the chip shortage lasts, repairing is the smartest choice for most people. You keep the device you know, your data stays where it is, and you pay a fraction of a new one.

A few concrete steps:

• Check your battery. Does your phone run out faster than it used to? Then a new battery makes it feel like new again. For an iPhone, that is usually done within 30 minutes, with a 12-month warranty.
• Have a cracked screen replaced. A new screen costs much less than a new device, and you get a lifetime warranty on it.
• Protect what you have. A case and a screen protector prevent the repairs we see most often. With the Protection Kit from our shop, you get a case, screen protector and camera protector for your device. All accessories are 3 for 2, online and in our stores: you pay for two of the three.
• Check the price first. On our prices page you can see what a repair costs per model, before you buy something new.
• Upgrading anyway? You can sell your old iPhone through our partner Swappie and hand it in at one of our stores. Read how it works at thephonelab.nl/en/selling-your-device.

Our own repair data shows that screen repairs accounted for around 58 percent of our repairs over the past year, and battery replacements for around 19 percent. So most of the problems people walk in with can easily be solved without a new, more expensive device. ThePhoneLab is an Independent Repair Provider for Apple, Samsung, Google, OnePlus and OPPO, among others, and works with original parts or a more affordable alternative from our own brand.

3 for 2 on all accessoriesOnline and in our stores. Mix & match: combine whatever you like, the cheapest one is free.

About ThePhoneLab

For more than ten years, ThePhoneLab has been repairing phones, tablets and laptops, every day, throughout the Netherlands. Every repair starts with an honest diagnosis, no cure no pay, and then you choose what suits you: original parts or a more affordable alternative from our own brand, for every budget. Because repairing is almost always smarter than replacing, for your wallet and for the planet. No wonder customers give us a 9.5, in tens of thousands of reviews.

View all repairs or find a store near you.