PC prices surge up to 40% in SG as AI boom drives up cost of computer memory, storage, and GPUs amid global shortage as companies expand data centres

Singapore is experiencing a surge in PC prices, with some models now 40 percent more expensive than a year ago. This price hike is primarily due to a global shortage of computer memory, storage, and graphics cards, driven by the ongoing AI boom. Companies requiring large quantities of these components for their data centers are driving up demand and putting pressure on supply, which in turn is affecting the prices of ordinary PCs as well.

In the second quarter of 2026, the average price of a laptop in Singapore rose 26 percent to S$1,650, according to Malay Mail, which cited The Straits Times. Gaming desktops saw the biggest increase, with prices jumping 39 percent to nearly S$1,860. Gaming laptops also saw a significant rise, climbing 17 percent to around S$2,890.

Individual components have seen even steeper price increases, with a 32GB DDR5 RAM kit at Sim Lim Square averaging S$763 in August, up from S$195 a year earlier. A 1TB solid-state drive more than doubled in price to S$328, while Nvidia's 5060-series graphics cards rose 44 percent to S$824.

While some retailers anticipate a slight relief in PC prices by the second half of 2027, the current situation indicates that the high prices are likely to persist through the end of that year at least. This has already impacted Singapore's computer shops, with some reporting a 20 percent to 80 percent drop in sales this year. For example, R Zech, an owner of a laptop shop on Sim Lim Square, reported an 80 percent decrease in sales of new and refurbished computers.

This situation has forced many buyers to delay their purchases, while others are opting to buy sooner in the hope of getting a better deal before prices rise further. However, IDC predicts that the PC price surge will continue through 2027, with only a marginal decrease expected in the second half of that year. Companies manufacturing graphics cards are also expected to increase their prices in the final six months of 2026, which could further drive up the overall cost of computers.

For those not in urgent need of a new computer, waiting may seem like the best strategy. Paying today's inflated prices could be a regrettable decision if prices ease later, as the difference in cost could be significant.