Memory chip prices have risen to record levels and are expected to affect smartphone prices

Prices for random-access memory (DRAM) have increased significantly in the global electronics market. Zamin.uz reported on this.

In the second quarter of this year, due to an imbalance between supply and demand, the price of memory chips intended for consumer devices nearly doubled. This situation is expected to directly affect the prices of smartphones, laptops, and personal computers in the coming months.

Ixbt.com reports that according to data from the SigmaIntell research company, the price of LPDDR4X 4 GB memory modules has increased by 75 percent compared to the previous quarter.

The price of LPDDR5X 12 GB chips, used in modern flagship smartphones, has risen by a record 89 percent. This jump is clearly felt not only in the corporate segment but also in devices intended for ordinary users.

Artificial intelligence and changes in production are cited as the main reasons for the sharp increase in memory chip prices, as manufacturers have shifted their priority directions. Currently, companies such as Samsung, SK Hynix, and Micron are focusing on high-profit HBM (High Bandwidth Memory).

These chips are essential for the artificial intelligence systems of NVIDIA and other companies, and the demand for them is excessively high. As a result, the production volume of DRAM chips intended for ordinary smartphones and computers has decreased.

Because manufacturers are placing more emphasis on DRAM and eSSD memory intended for servers, an artificial shortage has arisen in the consumer market. This has led to an uncontrolled increase in prices.

Due to the market situation and future forecasts, many smartphone and computer manufacturing brands are reviewing their strategies. Some companies are trying to maintain product costs by reducing orders for memory chips.

Others may be forced to increase the prices of new models. According to Ixbt.com, the rate of price increases may slow down slightly in the second half of the year, but there is no talk of a decrease.

As indicated in a new report by Jefferies analysts, memory prices in the global market will remain high until the end of 2024. According to experts, a significant decrease in prices may only occur by 2028.

For now, large companies dealing with cloud technologies continue to increase memory reserves in their warehouses, which further intensifies the overall shortage in the market. This tendency is inevitably expected to reflect on the Uzbekistan market in the near future.

The increase in the cost of imported gadgets will significantly affect the prices of smartphones, especially in the mid and high-end segments. Therefore, those planning to purchase a new device should prepare accordingly.