Smartphone and Computer Prices May Rise: LPDDR5X Memory Chips Surge in Price

The global electronics market is witnessing an unprecedented rise in RAM (DRAM) prices. In the second quarter of this year, due to an imbalance between supply and demand, the price of memory chips for consumer devices has nearly doubled. This situation is expected to directly impact the prices of smartphones, laptops, and personal computers in the coming months. This is reported by Ixbt.com news says.

According to data from the SigmaIntell research company, the price of LPDDR4X 4 GB memory modules rose by 75 percent compared to the previous quarter, while the price of LPDDR5X 12 GB chips used in modern flagship smartphones increased 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

The main reason for such a sharp increase in memory chip prices is indicated as the change in priority directions by manufacturers. Currently, giants such as Samsung, SK Hynix, and Micron have focused their attention on high-profit HBM (High Bandwidth Memory). These chips are essential for AI systems from NVIDIA and other companies, and the demand for them is extremely high.

As a result, the production volume of DRAM chips for ordinary smartphones and computers has decreased. Because manufacturers are placing more emphasis on DRAM and eSSD memory for servers, an artificial shortage has arisen in the consumer market. This, in turn, has led to uncontrolled price growth.

Market Situation and Future Forecasts

Due to rising prices, many smartphone and computer brands are reviewing their strategies. Some companies are trying to maintain product costs by reducing orders for memory chips, while others may be forced to increase the prices of new models. According to Ixbt.com, the rate of price growth may slow down slightly in the second half of the year, but a decrease is out of the question.

A new report from Jefferies analysts notes that memory prices on the global market will remain high until the end of 2024. Experts believe that a significant decrease in prices may only occur by 2028. For now, large companies involved in cloud technologies continue to increase memory reserves in their warehouses, which further intensifies the overall shortage in the market.

This trend is inevitable to reflect in 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 segments. Therefore, users planning to buy a new device are advised not to delay their purchase.