Why hardware prices are rising
Computer hardware quotes are climbing. Here's what's driving it, and why timing matters before EOFY.
Computer hardware quotes are climbing, but it isn’t your supplier lifting the prices. Further back in the supply chain, the chips that power every machine now cost about three times to what they did a year ago.
Australian tech retail giant JB Hi-Fi put the warning out earlier this year. CEO Nick Wells told investors that smartphones and laptops will cost more as the AI-led data centre boom squeezes memory supply. Suppliers are trying to hold the line, but these increases are making their way through to businesses and consumers.
So what’s driving this increase? There are three main reasons:
Reason 1: AI is eating the world's memory
Memory chips, the RAM and storage in every device, come from a handful of factories. Three companies make about 70% of the world's memory. AI data centres need large volumes of the same materials that make chips in office PCs and servers, therefore, production has shifted towards higher-value AI chips. This supply and demand imbalance has resulted in rising costs of chips.
Dell, Lenovo, HP, Acer and ASUS have warned of 15 to 20% rises on laptops and desktops. Servers are tipped to climb around 15%, with memory-heavy builds hit hardest. Network gear like switches and routers could rise anywhere from 9 to 40%. Micron, a large semiconductor manufacturer, has pulled out of the consumer market to focus on data centre customers, which leaves fewer suppliers and tighter stock.
Reason 2. Supply chain shortages
Storage drive supply remains tight, as the same AI demand pulls SSDs and hard drives toward the data centres. On top of that, support for Windows 10 ended in late 2025, so many businesses are replacing machines at the same time supply is squeezed.
Reason 3. Inflation
Then there's the cost of everything around the hardware. US trade tariffs have disrupted supply chains and added cost to imported components. A slightly lower Australian dollar makes imported gear dearer again by the time it lands here. Freight, warehousing and the general cost of moving goods have all risen too.
What to do before 30 June
Prices have risen all year and will continue to rise in the second half of 2026. If your business foresees hardware upgrades, purchasing now will cost less than waiting (potentially years) for supply chains to settle and prices to ease.
At ShadowSafe, we've seen a large increase in hardware purchases this month. If you’re ordering before June 30 for EOFY, please place your order as soon as possible and not leave it until the last week of the financial year.
If you need assistance or a quote to upgrade your hardware, complete the Request Hardware form on our Support Hub or call us on 07 3185 1777.
Sources: JB Hi-Fi results commentary (Feb 2026). Price guidance from Dell, Lenovo, HP, HPE and Cisco. DRAM market data from TrendForce. Figures are indicative and current as of June 2026.
