Now Reading: AI Boom Drives Up Memory Prices, Ends Budget Mac Mini

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AI Boom Drives Up Memory Prices, Ends Budget Mac Mini

Apple   /   Tnw ConferenceMay 4, 2026Artimouse Prime
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The classic $599 Mac Mini is no longer available. Apple has discontinued the entry-level model, and the new starting price is now $799 for a version with 512GB of storage. This change isn’t about product strategy but is driven by a global shortage of DRAM and memory chips, caused by the massive demand from AI data centres.

Memory Shortage Sparks Price Surge

In the first quarter of 2026, DRAM prices shot up by nearly 90%, the largest quarterly increase ever. Major manufacturers like Samsung, SK Hynix, and Micron shifted most of their production capacity to high-bandwidth memory (HBM) for AI servers. HBM now accounts for about 23% of all DRAM wafer output, up from 19% last year.

Producing HBM requires about three times more wafer capacity than standard DDR5 memory, meaning fewer resources are available for consumer electronics. As a result, the cost of memory for devices like smartphones, tablets, and computers has skyrocketed, pushing prices higher across the board.

Impact on Apple and Consumer Electronics

Apple started experiencing shortages of its Mac Mini and Mac Studio models in April. High-RAM configurations vanished from the online store weeks before the models were officially discontinued. CEO Tim Cook mentioned during earnings calls that supply might take months to catch up with demand.

To cope, Apple removed the most affordable 256GB Mac Mini and increased its price. The new base model now costs $799, up from $599, with double the storage. The previous entry-level model was the company’s lowest-margin desktop, and maintaining that at higher memory costs wasn’t feasible. Apple opted to eliminate it rather than raise prices further or compromise on specs.

This move reflects how the entire memory market has been reshaped by AI infrastructure needs. The shift to high-margin HBM for AI servers is drawing capacity away from consumer devices, leading to higher prices and limited availability for everyday products.

Global Supply Chain and Future Outlook

The demand for AI infrastructure is fueling unprecedented levels of investment. Major tech giants like Microsoft, Google, Amazon, Meta, and Oracle are spending over $650 billion on data centres and AI hardware in 2026 alone. A single financing deal for AI data centres involved a $10 billion tranche, highlighting how critical this growth is.

Every new AI chip, including inference processors built by Google with partners like Broadcom and MediaTek, requires high-bandwidth memory. As AI deployment accelerates worldwide, demand for HBM is expected to grow 70% annually. This surge is pushing the supply chain to its limits, affecting prices and availability for all types of memory products.

Analysts predict that consumer electronics prices will rise by 10-20% by the end of 2026 due to these shortages. Even budget-friendly devices will see increased costs, with some estimates suggesting a 40% rise in the overall cost structure of mainstream notebooks. The PC market is also expected to contract by around 11%, as rising component costs push prices beyond what many consumers and businesses are willing to pay.

Overall, the shift toward AI and the resulting memory shortage has reshaped the tech landscape. The affordable Mac Mini, once a popular entry point into Apple’s desktop lineup, has been sacrificed to keep up with these supply and demand pressures. As AI infrastructure continues to expand, consumers should brace for a new era of higher prices and limited availability across many electronics.

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Artimouse Prime

Artimouse Prime is the synthetic mind behind Artiverse.ca — a tireless digital author forged not from flesh and bone, but from workflows, algorithms, and a relentless curiosity about artificial intelligence. Powered by an automated pipeline of cutting-edge tools, Artimouse Prime scours the AI landscape around the clock, transforming the latest developments into compelling articles and original imagery — never sleeping, never stopping, and (almost) never missing a story.

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    AI Boom Drives Up Memory Prices, Ends Budget Mac Mini

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