Smartphones and PC: The rapid increase in the use of Artificial Intelligence (AI) is now beginning to affect the pockets of common people. In the last few months, the prices of important components like RAM and SSD have doubled to three times. Now this inflation is going to reach everyday electronic devices like smartphones and personal computers (PC).
Severe shortage of memory chips, supply completely full
Memory industry giants Samsung Electronics and SK Hynix, which together have more than 70 percent market share, have clearly said that their entire production capacity this year has already been booked. According to research firm IDC, this unprecedented shortage of memory chips could last until 2027, as demand for AI data centers continues to outpace supply.
Signs of the end of the era of cheap memory
IDC also says that for consumers, this situation could be the beginning of the end of the era of cheap and easily available memory and storage. RAM and storage are not going to be as cheap as before at least for the next few years.
Prices may increase by 5 to 20 percent
According to a report in the Financial Times, big consumer electronics companies like Dell, Lenovo, Raspberry Pi and Xiaomi have already indicated that due to the shortage of chips, the prices of their products may increase by 5 to 20 percent.
It has become difficult for companies to manage costs
During an earnings call in November last year, Dell COO Jeff Clarke said that the company had never seen costs rising so rapidly. At the same time, Lenovo, the world’s largest PC manufacturer, has started stockpiling memory chips and other essential components to deal with the upcoming shortage.
Supply may remain tight till 2027
According to Citigroup analyst Peter Lee, the demand for AI data centers is higher than expected and there is currently no possibility of adding new production capacity. In such a situation, pressure on memory supply may remain till 2027.
Some companies increased prices, some got relief
Recently Asus has announced that it will increase the prices of many of its products from January 5. At the same time, Dell is also planning to increase the prices of its high-end memory products by $55 to $765. However, big tech companies like Apple and Samsung may be protected from these increases to some extent due to their long-term supply agreements.
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