A global shortage of memory is anticipated to impact the cost of smartphones and PCs, with the International Data Corporation (IDC) projecting that this issue could extend into 2027. The report highlights the potential ramifications of the current RAM shortage, suggesting a departure from the era of inexpensive and accessible memory and storage.
According to IDC, the pricing of smartphones is significantly influenced by memory. The rise in RAM costs compels manufacturers to consider increasing retail prices, reducing specifications, or a combination of both strategies. Budget-focused smartphone brands such as Xiaomi, Oppo, Vivo, Honor, and Huawei face challenges in absorbing these increased costs as they have already optimized their parts for affordability. Reports indicate that Xiaomi and Honor have initiated price increases for their tablets and other products, with Xiaomi indicating potential upcoming increases for their smartphones as well.
Conversely, larger companies like Samsung and Apple may have more flexibility because they are capable of securing memory supplies up to 24 months in advance. While these companies might not significantly increase RAM in their flagship models, they continue to introduce updates, such as the 12GB RAM in the latest iPhone 17 Pro and Samsung Galaxy S25 Ultra. The IDC predicts that the average selling price of smartphones could rise by 3 to 5 percent under moderate conditions, or by 6 to 8 percent in a more pessimistic scenario.
The memory shortage is also creating challenges for the PC industry coinciding with Microsoft’s conclusion of support for Windows 10 and the demand for memory-intensive AI devices. Confirmed price increases have already come from companies like Dell, HP, Acer, and Asus. Additionally, manufacturers of AI-driven devices, such as Microsoft’s Copilot Plus PCs, may need to either increase prices or limit RAM specifications, despite these devices requiring a minimum of 16GB of RAM. While the IDC’s official forecast for the PC market remains unchanged for 2026, they estimate that average PC prices could rise by 4 to 6 percent in a moderate scenario or by 6 to 8 percent in a pessimistic outlook.
Source: https://www.theverge.com/news/848199/ram-shortage-pc-phone-price-increases