AI wave leaves Mangaluru business facing 'price pain'

Mangaluru

The artificial intelligence revolution may be redefining industries across the world, but in Mangaluru it is creating an unexpected challenge for students, entrepreneurs and small businesses. As global demand for AI infrastructure surges, the cost of laptops, desktops and other computing devices has risen sharply, slowing sales and making digital transformation increasingly expensive for local enterprises.

Computer dealers across the city say they are witnessing a significant drop in purchases despite steady enquiries. Customers continue to visit showrooms looking for new systems, but many postpone their buying decisions after learning about the revised prices. The increase is not driven by local market conditions but by a global shortage of memory chips, as semiconductor manufacturers prioritise high-bandwidth memory used in AI servers and data centres over consumer products.

The impact is being felt across every sector. Students entering colleges, professionals working remotely, educational institutions, start-ups and established businesses are all finding it difficult to replace ageing computers. Systems that were once considered affordable have moved beyond the budgets of many families, while organisations are extending the life of existing equipment instead of investing in new technology.

The ripple effect is particularly worrying for the small business community, where affordable technology is no longer an option but a necessity. From neighbourhood retailers and accountants to service providers and manufacturing units, computers form the backbone of daily operations. Delaying technology upgrades could ultimately affect productivity, efficiency and competitiveness.

Brian Pinto of ACCS believes the issue goes beyond rising laptop prices. "Information technology infrastructure has become the foundation of every small business. Billing, accounting, inventory management, customer service, digital payments and communication all depend on reliable computer systems. When the cost of technology increases sharply, it directly affects business growth. Many entrepreneurs who were planning to modernise their operations are now forced to postpone investments, and that slows digital adoption at the grassroots," he said.

Industry observers point out that the current situation highlights the interconnected nature of the global economy. The same artificial intelligence boom that is powering innovation in multinational corporations is also influencing the price of an entry-level laptop in cities like Mangaluru. As AI companies continue investing billions in data centres, manufacturers are diverting production towards specialised memory chips, reducing supplies for consumer electronics and driving up prices worldwide.

Local retailers say the slowdown has also affected sales of desktops, SSDs, RAM modules and surveillance equipment, all of which rely on similar semiconductor components. While demand for digital solutions remains strong, affordability has become the biggest hurdle. Experts believe prices may stabilise only after semiconductor production expands and supply catches up with global demand. Until then, consumers and businesses alike are expected to remain cautious about new purchases.

For Mangaluru, the story is not merely about expensive laptops. It is about how a global technological revolution is reshaping local realities. As businesses strive to become more digital and efficient, access to affordable IT infrastructure will play a crucial role in determining their growth. Unless technology remains within reach of ordinary consumers and small enterprises, the benefits of the AI revolution may remain concentrated among those who can afford to keep pace, leaving the rest to struggle with ageing systems in an increasingly digital world.