U.S. Media: Memory Shortage Strikes Global Electronics Industry, Big Players Shift Costs, Small Firms Face 'Survival Crisis'

Explosive demand for AI chips is triggering a global shortage of memory, splitting the consumer electronics industry into two starkly different worlds.

Apple has raised prices on multiple iPad and Mac models this week. CEO Tim Cook described the current surge in memory prices as a "once-in-a-century flood." Microsoft promptly announced a $100 price increase for the Xbox Series S, bringing its price to approximately $500, and disclosed that the cost of console memory and storage has increased by more than 2.5 times. The company expects these costs to double again before autumn 2027. With substantial capital and strong supply chain bargaining power, these two giants can partially pass on cost pressures to consumers.

Smaller manufacturers, however, face a completely different crisis. The procurement cost for 8GB DRAM at startup company Mono Technologies has surged from $35 to $300—an increase of nearly eightfold. For defense communications equipment provider W5 Technologies, server quotes have risen from $8,839 to nearly $15,000, with delivery timelines delayed from May to August. Action camera brand GoPro warned that memory costs skyrocketed by 80% to $115 by the end of the first quarter, putting the company at risk of potential collapse; audio brand Sonos has seen its stock fall 23% year-to-date.

IDC analyst Nabila Popal bluntly stated that the current situation represents a "complete survival crisis" for manufacturers of devices priced under $100 and mid-sized Android phone makers—memory suppliers now only answer calls from major clients, leaving smaller players unable to secure inventory.

The biggest beneficiary is Micron Technology: the average selling price of its DRAM rose over 260% year-on-year in the latest quarter, revenue more than quadrupled quarter-on-quarter, and gross margin surged from 39% to 85%.

Original article: toutiao.com/article/1869155566035968/

Disclaimer: This article reflects the personal views of the author