“Memory shortages will continue to drive up the prices of consumer electronics”
2026-09-07 13:55Chips & Hardware🔥 42.2 heat score
1sources
1days unfolding
42.2heat score
5mentions
SummaryAI generated
Affected by the rise in storage chip costs driven by the AI boom, global consumer electronics products are facing severe shortages. Over the past year, DRAM prices have increased fivefold, with contract prices rising by 10%-20% quarterly. The price of DRAM for smartphones has increased by up to $250 per unit. Manufacturers and retailers are passing on these costs to final retail prices, and it is expected that prices will generally rise by up to 20%. Counterpoint Research Director and Nokia’s CEO both noted that semiconductor supplies for GPUs and CPUs are also tight, and the shortage will continue until 2027. Analysts predict that high prices will deter consumers from purchasing new devices and encourage them to extend the lifespan of existing ones.
AI has driven up the cost of memory chips, leading to shortages in almost all categories of consumer electronics. Manufacturers and retailers are raising prices by up to 20%. Over the past year, DRAM prices have increased fivefold, with contract prices rising by 10%-20% quarterly. The price of DRAM used in smartphones has risen by as much as $250, and it is expected that this cost will be passed on to phone prices this fall. MS Hwang, research director at Counterpoint, noted that semiconductors such as GPUs and CPUs are also facing supply shortages. Justin Hotard, CEO of telecommunications giant Nokia, said that chip shortages are affecting its mobile and network equipment, and he expects the shortages to continue until 2027. Analysts believe that with soaring prices, consumers will reduce their purchases of new devices and extend the lifespan of existing ones.