Electronics prices rising: experts advise against panic buying

A global microchip shortage is driving up electronics prices worldwide, with Apple announcing price increases of approximately 20% for some of its products. Estonian market participants warn that price increases will continue, but recommend purchasing only when there is genuine need, not out of fear of rising prices. The situation is not expected to normalise before 2028.

A global microchip deficit is putting increasing pressure on electronics prices, and Estonian consumers are not immune to this trend. Apple recently announced it will raise prices on some of its products by roughly 20%, but according to market participants, this is merely the first clear signal of a much broader problem.

Artificial intelligence consumes chips

According to market estimates, roughly 70% of all microchips produced globally today are directed towards artificial intelligence infrastructure. Data centre construction is accelerating, but production capacity cannot keep pace with demand, as launching a new production line takes three to five years.

Price increases actually began well before Apple's announcement. Already in the first quarter, Dell, HP and Lenovo started selling products at higher prices. Over the past year, DDR4 memory prices have doubled, while DDR5 prices have increased nearly threefold.

Estonian experts: buy out of necessity, not fear

Asko Pukk, head of sales at Telia, explained to Aktuaalne Kaamera that currently no manufacturer is fixing prices for longer than a month. "Buyers should be guided primarily by genuine needs. If a device truly needs to be replaced, it should be replaced. But there is no point in buying devices purely out of fear of price increases," he said.

The shortage is no longer limited to memory alone. Server components, laptops and desktop computers are becoming more expensive, with some component prices having increased several times over. Manufacturers are directing capacity increasingly towards the production of the most profitable server modules, reducing resources for manufacturing electronics intended for ordinary consumers.

Relief not expected until 2028

Tõnis Lind, development director at Arvutitark, noted that although new memory manufacturers are coming to market, they cannot quickly change the situation. "Starting up new production lines requires enormous investment and several years of construction work. Only after that can production volumes be increased significantly," he said.

Experts see two scenarios in which price growth could slow: a decline in the pace of artificial intelligence data centre construction, for which there are currently no signs, or the launch of new plants by the largest memory manufacturers, including Samsung and SK Hynix. Forecasts point to 2028 at the earliest for this to happen.