AI demand impact on electronics costs and markets

The rapid expansion of generative artificial intelligence is driving up costs across the consumer electronics sector by increasing demand for memory components. Manufacturers of digital cameras, computers, and smartphones are facing upward price pressure as a significant portion of global DRAM production capacity is diverted to AI data centers.

In the camera market, major brands such as Sony, Canon, Nikon, and Fujifilm have noted that rising component costs for internal chips and external memory cards present business challenges. Concurrently, the used camera market is seeing a trend where older digital models, particularly those released before 2016, are increasing in value.

Broadening the impact to general electronics, memory components now account for approximately 23% of total computer assembly costs. Experts anticipate that DRAM memory contract prices will rise by an additional 15-20% in the third quarter of 2026. Additionally, AI is influencing consumer behavior, with reports from Lithuania indicating that nearly half of consumers use AI platforms to assist in product comparisons and purchasing decisions.