A significant shift is looming in the PC industry as the effects of a global memory shortage begin to surface. Manufacturers are facing mounting challenges in maintaining current prices, foreshadowing a potential wave of price hikes that could impact gamers and tech enthusiasts worldwide.
Struggles Amidst a Looming DRAM Shortage
Memory shortages have dominated headlines, yet an often-overlooked aspect is how PC vendors have been relying heavily on previous inventory stockpiles. This strategy has kept consumer laptop prices relatively stable, unlike the noticeable increases in RAM module costs. However, reports suggest that major PC manufacturers are incurring losses as they struggle to keep prices unchanged.
PC manufacturers react sensitively even if the cost of production increases by just 1 cent (0.01 dollars, about 14 won). Even if they try to reduce it by just a few cents, if the cost of production increases by tens of dollars at once, they will naturally incur a loss.
In particular, the supply prices of core laptop components, such as processors (CPUs) and batteries, as well as memory and SSDs, have increased. We have no choice but to raise the prices of new products coming out next year by at least 20% and quickly discontinue existing products.
– ZDNet Korea (Automated Translation)
An essential driver behind the anticipated price hikes is the strategic focus of DRAM producers like Samsung and SK hynix on the AI sector. Their production is skewed towards AI-focused products, which means higher expenses for consumer-grade memory allocations. Moreover, DRAM producers prioritize profitability, directing most output towards AI demands.
Preparing for a Price Surge
The forecast indicates a 20% increase in next-gen product prices, which aligns with rumors of rising GPU costs. Devices featuring Intel’s Panther Lake or AMD’s Gorgon Point APUs are expected to carry notably higher price tags due to insufficient inventory reserves from brands like ASUS, Acer, and Lenovo. Interestingly, increasing DRAM production introduces its own set of challenges.
Samsung and SK hynix are wary of potential ‘oversupply’ scenarios if DRAM production scales up too much, suggesting a continued period of supply constraints for DRAM-based products. Indicators highlight that assembling a PC next year will likely be more costly than current expenses.