According to a Xiaomi executive, prices for working memory and storage have almost quadrupled in one year. Major media reports indicate that a Xiaomi smartphone with 12 GB RAM and 512 GB storage now costs the manufacturer the equivalent of 2060 kronor more than before. Two weeks ago, the situation became acute, with producers requiring customers to buy at least a year's consumption at a time, at three to four times the price.
The shortage of memory chips is expected to continue this year as demand from the AI sector increases sharply. According to Nikkei Asia, leading manufacturers are expected to only meet about 60 percent of demand despite ongoing expansion plans. Analysts note that an annual production increase of about 12 percent is required to catch up with demand, but current plans are significantly lower.
It is quick decisions and extreme stress.
Prices for memory chips began rising half a year ago. Since the beginning of the year, the supply of DRAM memory and NAND flash has decreased, while some processors have become more expensive. However, no brutal price increases have been seen on the smartphone market so far; on the contrary, major media reports indicate it has recently been possible to find bargains on, for example, Pixel phones.
Several new factories are not expected to reach full production until at least 2027 or later. The balance between supply and demand for memory is not expected to normalize until 2028, according to low-confidence reports.
Most stressful is that the price continues to rise while one is considering. If you wait too long, it is not certain that you can get the goods at all.
Prices are soaring and are expected to affect consumers this year. When existing inventories and contracts run out, prices could rise significantly, or smartphones could get less RAM and storage than before, according to major media reports. According to Svenska Dagbladet, Mikael Wikberg, operational manager at Frontside, described the situation as requiring quick decisions and extreme stress. He added that the most stressful aspect is that the price continues to rise while one is considering, and if you wait too long, it is not certain that you can get the goods at all.
It remains unclear which specific smartphone models or brands will be most affected by the price increases, or the exact percentage increase in memory chip prices for consumers in different regions. The duration of the current acute shortage phase before any relief from new production capacity is also uncertain, as is whether smartphone manufacturers will absorb the increased costs or pass them entirely to consumers. The impact on other electronics sectors beyond smartphones, such as computers or servers, has not been detailed.