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RAM prices are forcing companies to choose higher prices, worse specs, or both

Shrinkflation Is Quietly Making All Gadgets Worse

gizmodo.com

May 6, 2026

4 min read

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54/100

Summary

Shrinkflation is affecting consumer electronics, leading to higher prices and reduced quality in gadgets by 2026. Major semiconductor companies, including SK Hynix, Samsung, and Micron, have adjusted their production strategies in response to these trends.

Key Takeaways

Shrinkflation is affecting the technology sector, leading to higher prices and lower specifications for gadgets, including smartphones and PC components.
Major smartphone brands, such as Google and Motorola, are reducing features and memory while increasing prices, exemplified by the Pixel 11 and the 2026 Razr models.
Smaller tech companies are particularly impacted by rising memory costs, resulting in downgraded specifications for products like the AYN Thor handheld and ASRock's DDR5 RAM.
The PlayStation 5 slim model's storage has decreased from 1TB to 825GB, highlighting a trend of reduced specifications across various tech products.

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RAM prices are forcing companies to choose higher prices, worse specs, or both ↗

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Analysis ready

Community Sentiment

Mixed

Positives

The MacBook Neo exemplifies how companies can still deliver capable and affordable gadgets despite rising RAM prices, showcasing innovation in product design.
There is hope for innovation in LLMs that could reduce RAM demand, such as ASIC LLMs or more efficient model architectures, which could reshape the market.

Concerns

Rising RAM prices are leading to product quality reductions, as seen with companies downsizing specs while increasing prices, which raises concerns about consumer value.
The trend of shrinkflation in tech products is alarming, as it indicates a shift towards lower quality and fewer features in consumer electronics.