Smartphone prices to increase in South Africa
South African businesses and consumers should expect smartphone and laptop prices to continue to surge amid heightened global semiconductor demand.
Speaking to 702, tech expert Siphumelele Zondi said the surge in demand is due to the fast rate of development in the artificial intelligence (AI) space.
“This is all because of the fast rate of AI development that’s happening at the moment,” he said.
He explained that major AI players are buying up powerful chips because they will need them for the data centres that support AI technologies.
Zondi said that chipmakers were focusing on producing semiconductors for hyperscalers and other companies amassing hardware with which to train AI models.
The profit margins on these chips were much higher than those used in relatively cheap consumer smartphones.
Responding to a question about how the challenges are impacting device prices, Zondi said it would extend far beyond just laptops and smartphones.
“There are companies like Samsung, which make microchips, but make these devices as well. Even they are complaining that they’re not going to have enough for other appliances and technologies,” he said.
“Think about your fridge, it uses a microchip. Think about your car, it needs it. Your phone as well.”
A major memory chip shortage has been impacting hardware prices worldwide, and South African businesses and consumers are feeling the pain.
In November 2025, Syntech CEO Craig Nowitz told MyBroadband that the price surges were being felt in South Africa, with no signs of stopping.
What we’re witnessing isn’t just a temporary spike; it’s a structural transformation driven by the explosive growth of AI infrastructure,” Nowitz said.
“Global hyperscalers like Microsoft, Google, and Amazon are building out AI data centres at breakneck speed, and manufacturers are prioritising these high-margin enterprise clients.”
He said this had led to major shortages and price hikes, with some consumer SSDs up 50% and DDR5 kits doubling in price.
He warned that the trend is expected to continue. As the CEO of an IT distributor, Nowitz has had a front-row seat to one of the most dramatic shifts in the tech supply chain in recent years.
“Over the past year, demand for server-grade DRAM and high-bandwidth memory has skyrocketed,” he said.
“As a result, consumer-grade DDR4 and DDR5 modules, the bread and butter of our retail and integrator channels, are becoming harder to source and significantly more expensive.”
Memory price madness
Online PC hardware retailers in South Africa had reported price increases of up to 250% on DDR5 RAM in the last three months of 2025.
Many SSD prices were also up by more than 100%, and the price surges have affected other hardware with memory, including graphics cards, laptops, and complete desktop builds.
The general advice for consumers is to shop on the second-hand market, buy components as soon as possible, and consider older hardware platforms to avoid the impact of the price surge.
Wootware recommended buying components as early as possible rather than waiting, as prices are expected to continue rising.
“The unprecedented nature of this shortage means traditional advice about waiting for better prices does not apply in this market cycle,” it said.
“If you’re planning system upgrades within the next two years, prioritise acquiring RAM, SSDs, and graphics cards as soon as possible.”
The PC hardware retailer suggested that budget-conscious builders consider older motherboards and processors that support DDR4 memory.
Evetech agreed with Wootware’s advice and also recommended shopping around and comparing full build costs, not just those of individual components.
It warned consumers to buy components only from reputable retailers to avoid counterfeit products entering the market during the shortage.
Progenix recommended that consumers consider second-hand marketplaces like Carbonite and Facebook Marketplace for reasonable prices on used RAM.
“They should get a proof of purchase (PoP) from the seller if possible, as RAM generally carries a lifetime warranty,” it said. If the RAM breaks, it is important to have the PoP for a warranty claim.
In response to the price surge, Progenix has started offering a limited number of PCs and upgrade kits with no RAM — a move it said has been doing reasonably well.
“We’re actively increasing the range offered without RAM, and will do so until the pricing crisis is behind us,” it said.
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