Storage shortage will intensify? Industry insiders urge consumers to buy phones and computers in advance

In recent months, a global shortage of high-bandwidth memory (HBM) has emerged. Goldman Sachs pointed out as early as December last year that consumer electronics companies like Nintendo would be among the first victims of this super “storage famine.” And now, the list of “victims” continues to grow.

Last week, industry insiders noted that smartphones, personal computers, and other consumer electronics would face cost pressures. Subsequently, Goldman Sachs released another report warning that due to soaring memory prices, they have lowered their global PC shipment forecasts. As the “victims” list expands again, there is clearly reason to believe that this memory price shock will persist throughout the year.

American tech columnist Dave Lee pointed out, “The frustrating thing about the AI boom is that, whether intentionally or not, everyone has to pay for it.”

“For some, this manifests as increased electricity bills due to data centers straining the power grid. For many others, it will be reflected in the rising costs of almost every electronic product you can think of: laptops, smartphones, TVs—even possibly cars,” Lee said.

The above statements are undoubtedly correct. Looking at Amazon’s price tracking site CamelCamelCamel, you can see the price of Crucial Pro DDR5 64GB memory has risen in a parabolic curve, soaring from $145 to $790 in just six months.

Downstream Price Surge Is Coming

A new report citing YOLE GROUP data this Monday further reveals the scope of affected areas impacted by the memory shortage.

The report warns that entry-level consumer electronics, such as smart TVs, set-top boxes, home routers, entry-level tablets, smartphones, and personal computers, will be among the most severely affected sectors. The automotive industry is also expected to be heavily impacted due to longer validation cycles.

This analysis is based on comments from numerous senior executives deeply involved in the memory supply chain. These executives also warn that the memory shortage will continue until the end of this year and extend into 2027. Therefore, if you plan to assemble a new workstation or gaming PC, or consider upgrading to a device with AI capabilities, be aware: prices are expected to further soar.

For this reason, Goldman Sachs analyst Allen Chang has lowered the global PC shipment forecasts for 2026 to 2028, noting that large volumes of HBM supply are being absorbed by data centers, causing memory prices to spike sharply.

“Demand in the server and AI sectors is extremely strong, and we expect NAND flash memory prices to continue rising through 2026,” said P.S. Pua, CEO of NAND flash controller chip developer Phison Electronics.

Pua pointed out, “But many consumer electronics manufacturers may not be able to bear such a price increase. The TV industry will suffer heavily, and products like set-top boxes will also face serious impacts. Overall shipments will inevitably decline, and many manufacturers simply cannot afford such high costs.”

Sassine Ghazi, CEO of Synopsys, stated that the capacity of the world’s top memory suppliers is now almost entirely occupied by AI infrastructure demand, squeezing other end markets. “This is the golden age for memory companies,” Ghazi said.

Meanwhile, storage chip suppliers such as SK Hynix, Samsung Electronics, and Micron Technology are implementing stricter customer reviews to prevent panic buying, even as they enjoy record-breaking profit margins.

Consumers Want to Buy Quickly

For those hesitant about upgrading their computers before memory prices further soar, a Japanese component supplier executive offered a sharp piece of advice: “If you want to buy consumer goods, computers, or smartphones… act immediately, because all product prices will rise. For example, in a typical computer, the proportion of memory chips in the bill of materials has surged from around 15% to nearly 40%.”

It is reported that some PC manufacturers are planning to reserve additional memory slots in entry-level models for users to expand memory later as needed. Other manufacturers are warning channel partners and buyers that, with rising memory chip costs, prices will inevitably increase.

Asus Chairman Jonney Shih said that to cope with soaring storage chip costs, the entire PC industry will likely raise prices for new products in 2026. He stated that Asus is actively adjusting its product lines to optimize memory supply and launching new models that better meet customer needs.

As one of the first to warn of the price surge crisis, Nintendo will release its earnings report next week. Many industry insiders expect that its new gaming console Switch 2, released last year, will generate impressive revenue, as recent data shows strong holiday sales performance in the US. However, due to the robust demand for AI hardware and tight memory chip supply, this could push up the price of new gaming consoles and hinder Nintendo’s stock recovery.

“Unless memory prices drop significantly, Nintendo seems poised to face a nightmare in manufacturing costs for gaming consoles,” said Pelham Smithers, a UK-based stock analyst specializing in the gaming industry.

According to TrendForce data, the prices of DRAM and flash memory modules used in Nintendo devices surged significantly in Q4 last year, and shortages are expected to worsen. Citigroup analysts Peter Lee, Jayden Oh, and Josh Yang forecast that by 2026, the average selling price of DRAM is expected to increase by 120%, while NAND flash memory prices could rise by 90%.

Industry analyst Nathan Naidu estimates that Nintendo may have to raise the retail price of Switch 2 by 15% to offset the rising memory costs. He stated that once Nintendo exhausts its memory inventory and any fixed-price contracts, this cost squeeze “will put pressure on the profit margins of Switch 2 and, consequently, the company’s profitability.”

(Source: Caixin Global)