tech
The data center boom is making the memory shortage even worse
The memory shortage at the heart of recent price hikes on consumer electronics is expected to worsen in the next year, with no quick fix in sight.
TL;DR
- The memory shortage impacting consumer electronics prices is expected to worsen, with pressures potentially lasting beyond 2027.
- The AI data center build-out is increasing demand for memory chips, creating competition with consumer electronics manufacturers.
- Memory suppliers are reallocating capacity towards AI hyperscalers, leading to higher component costs and tighter margins for gadget makers.
- Analysts and CEOs from companies like Micron and TF International Securities predict continued tight supply and significant price hikes.
- Microsoft has already doubled Xbox console storage and memory prices and expects further increases, while Apple has also raised prices on Macs and iPads.
- While efforts are underway to expand memory supply, production lead times are long, and there's no guarantee of price reductions for consumers.