Amazon · Nvidia · AMD · CNBC Technology
Rise in memory chip costs puts pressure on retailers of laptops and smartphones
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As the global artificial intelligence race accelerates, memory chips are getting more expensive.
Key facts
- Soaring memory costs are expected to reduce global personal computer shipments by 10.4% and smartphone shipments by 8.4% in 2026, according to Ranjit Atwal, a senior director analyst at Gartner
- Anthony Chukumba, an analyst at Loop Capital who covers Best Buy, told CNBC he thinks larger retailers such as Best Buy will fare better than smaller ones, because of the market share they hold
- This one is looking like it won't be until the end of 2027 before they get to any type of regional pricing
- Companies such as Nvidia, Advanced Micro Devices and Google have been scrambling to secure RAM for their chips
Summary
Memory storage, known as RAM, is crucial for all computing devices, including phones, tablets and laptops. Apple on Thursday announced it's raising its prices on MacBooks and iPads, passing along the rising cost of memory to consumers, with the potential for more price hikes down the road. Incoming Best Buy CEO Jason Bonfig said on a call with reporters earlier this month that the company expects its computing division will be the most affected by price hikes. "We did see some staggered price increases in Q1, so moving to Q2, we do expect to increase and units from an elasticity perspective to be impacted," Bonfig said.