Analysts explained which devices were most affected by the rise in memory prices

How rising memory prices affect the electronics market

The repeated price spikes in memory are already forcing a reduction in sales volumes of computers, smartphones, routers, and TV set‑top boxes this year. The hardest blow will be to the gaming console sector – memory can account for up to 35 % of their cost.

> Research findings

> According to data from *The Wall Street Journal* (linking TrendForce, Counterpoint Research, and IDC), memory makes up about 20 % of the cost of the Nintendo Switch 2. For Sony PlayStation 5 and Microsoft Xbox it could rise to 35 %.

> Next are personal computers: 20 % to 30 % of costs go to memory. Smartphones are around 20 %, and for budget models this is especially noticeable.

Low memory availability forces cheap smartphone makers to cut production, which could lead to a global sales decline of about 5.2 % over the year.

Major players and their strategies

* Apple – although memory can exceed 20 % of a phone’s cost, the company benefits from scale and favorable purchasing terms.

* TVs – with growing focus on internet services, memory accounts for up to 7 % of device cost.

Manufacturer price‑reaction parameters

* Dell: raised prices on some corporate laptops by 30 %.

* Acer: tried to reduce memory costs by cutting the amount in base configurations.

* Xiaomi: stopped producing lower‑end models that used less memory.

* Lenovo: saw significant profit shrinkage due to rising memory prices.

Forecasts and long‑term outlook

IDC projects a global PC sales drop of 8.9 % this year. Memory shortages are expected to persist at least until 2028 even with increased production capacity. Microsoft expects Windows sales to fall about 10 % due to the shrinking PC market.

Thus, rising memory prices have a multifaceted impact: from altering cost structures of individual devices to reshaping pricing strategies of major manufacturers and forecasting global sales declines.