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The lack of DRam chips—vital elements for smartphones, laptops, and gaming consoles—has occurred as producers are shifting their manufacturing focus to high-performance memory for AI servers. Amid this context, the manufacturing of chips for the mass market is decreasing. As reported by the International Data Corporation, the retail costs of electronics have increased by 10-20% due to "RAMageddon."
The FT notes that Apple increased the prices of certain laptops and tablets by $300 this summer and anticipated a drop in sales. Microsoft, Sony, and Nintendo increased console prices to $150, and Nintendo disclosed unexpected costs of $75 million—approximately one-third of the company's yearly profit—owing to escalating component expenses, especially for memory. The publication noted that these price hikes might cause a drop in sales: research by Ampere Analysis indicates that if Sony or Microsoft consoles are priced at $1,000 or higher instead of their current $700, sales could decrease by as much as 43% over five years.
The newspaper reports that Chinese electronics companies—Xiaomi, Oppo, and Vivo—are facing the most significant challenges. These firms focus on the budget market, and their clients are not ready for sudden price hikes. Counterpoint Research Director Min-sung Hwang stated that the cost of DRam for smartphones has risen by $250 in the last year, which will influence autumn pricing. Nokia's CEO Justin Hotard thinks that chip shortages have become the standard, and he anticipates that the circumstances will remain the same until at least 2027.
source: ft.com
The FT notes that Apple increased the prices of certain laptops and tablets by $300 this summer and anticipated a drop in sales. Microsoft, Sony, and Nintendo increased console prices to $150, and Nintendo disclosed unexpected costs of $75 million—approximately one-third of the company's yearly profit—owing to escalating component expenses, especially for memory. The publication noted that these price hikes might cause a drop in sales: research by Ampere Analysis indicates that if Sony or Microsoft consoles are priced at $1,000 or higher instead of their current $700, sales could decrease by as much as 43% over five years.
The newspaper reports that Chinese electronics companies—Xiaomi, Oppo, and Vivo—are facing the most significant challenges. These firms focus on the budget market, and their clients are not ready for sudden price hikes. Counterpoint Research Director Min-sung Hwang stated that the cost of DRam for smartphones has risen by $250 in the last year, which will influence autumn pricing. Nokia's CEO Justin Hotard thinks that chip shortages have become the standard, and he anticipates that the circumstances will remain the same until at least 2027.
source: ft.com
