Memory Prices Are Destroying Everything

The End of an Industry

Each era has its unique symbol— the first decade of the 21st century might have been "Olympics," the second "Internet," and so on.

By halfway through the third decade, we've seen a strong contender for an era-defining symbol: memory.

Image Credit: Wccftech

After all, with billions of electronic devices globally, most rely heavily on memory, from home appliances to cars, infrastructure, and aerospace.

The booming artificial intelligence sector is no exception—

It's both the instigator and the biggest beneficiary of the memory crisis, just standing closer to the spotlight.

Image Credit: OpenAI

But the real issue isn't AI or memory; it's the reckless development model that relies on piling up memory and computing power to push AI forward at any cost.

This approach is spreading beyond its original domain, gradually affecting areas that shouldn't be impacted by technological crises.

1

As the most direct victims of rising memory chip prices, the smartphone market in 2026 is bound to be turbulent.

In this storm, smaller manufacturers can neither band together for warmth nor influence industry trends, resorting to cutting low-end lines, quietly reducing flagship specifications, and directly raising prices to maintain profit margins.

Even worse, Samsung Electronics' mobile division (MX) and storage division (DS), despite sharing the same name, show no mercy to each other. MX had to absorb price hikes and supply constraints imposed by DS.

In contrast, Apple and Huawei, with ample profit margins, can endure price wars, capturing more market share.

However, even these large players won't be immune indefinitely.

Whether it's the recently launched Pura 90 series or the rumored iPhone 18 lineup, we see compromises due to uncontrollable memory prices.

Consumers are also affected as memory price hikes impact not only initial retail prices but also secondary markets and used device transactions.

Image Credit: Xianyu

For instance, OPPO, which released its mid-range products last, has already experienced multiple cycles of price hikes, launch discounts, and plummeting used prices shortly after the release cycle ended.

As for entry-level models and cheaper contract phones, they are almost non-existent during what should be their prime season, as summarized by iFANR last year:

The era of abundant hardware quantity in smartphones has come to an end, replaced by across-the-board price increases and reduced features.

2

Following closely behind, computers face similar, if not greater, impacts.

While iPhones can leverage profit margins and supply chain control to maintain relatively stable prices, Macs, constrained by higher costs, fare less well.

Since last year, although Apple rarely publicizes difficulties in memory procurement, product line reductions are evident.

Image Credit: AppleInsider

For example, the beloved Mac mini quietly removed 32GB and 64GB memory options for the M4 and M4 Pro models, leaving only 24GB and 48GB configurations.

The M3 Ultra fared even worse—it originally offered 96GB, 256GB, and 512GB options, now reduced to just the basic 96GB:

The highly anticipated MacBook Neo, already struggling with limited A18 Pro inventory, now faces memory chip shortages.

Reports suggest Apple is considering removing the entry-level 256GB option, contradicting Neo’s original intent.

Windows PCs aren’t faring much better, given the close relationship between memory and SSDs.

With problematic Windows 11 and ongoing local AI demands, the DIY PC market has effectively collapsed over the past year, regardless of GPU prices.

Image Credit: Reddit

The sub-$500 laptop market is particularly chaotic.

Traditional laptops have limited profit models, and the drastic fluctuations in memory prices have revived the popularity of 8GB configurations.

Gaming consoles are also suffering.

Nintendo recently announced a price hike for Switch 2 from 49,980 yen to 59,980 yen, an increase of about 434 RMB.

Image Credit: Notebookcheck CN

Meanwhile, Valve’s long-awaited Steam Machine remains in production limbo, with an uncertain future.

3

Unfortunately, memory’s impact extends beyond the tech industry—challenges for some traditional industries present rare opportunities.

Recent reports from South Korea indicate that theft gangs have shifted their primary targets from precious metals to memory modules.

Offices of tech companies and startups in Seoul have faced targeted organized crime, with thieves acting like players in Escape from Tarkov, focusing solely on stealing memory modules.

Image Credit: XDA Developers

Memory modules are lightweight and don’t require melting or cutting like gold jewelry, making them difficult to trace once sold, leading to inevitable criminal activity driven by high prices.

Beyond traditional industries, the automotive sector has also been affected. According to The Paper:

_BYD announced on May 1st that it would adjust the pricing of optional advanced driver assistance systems for certain models under its Dynasty, Ocean, and Leopard brands, increasing from 9,900 RMB to 12,000 RMB, citing "a significant rise in global storage hardware costs."_

Image Credit: BYD

Even Elon Musk couldn’t escape the issue, expressing concerns during a Q1 earnings call about the impact of memory prices on Tesla’s supercomputer (Dojo) and robots, stating:

_If Samsung and Micron continue to tighten supply, Tesla will not rule out building its own semiconductor factory to produce storage chips._

4

The most absurd impact of memory price hikes is seen in South Korea’s matchmaking market.

With AI server-specific HBM (High Bandwidth Memory) development, the supply chain is dominated by Samsung Electronics and SK Hynix, giving Korea a stranglehold on global AI technology.

According to Korean media, Hynix scrapped its bonus cap system in September last year, distributing 10% of annual operating profits as performance bonuses to all employees.

Image Credit: Seoul Economics Daily

Hynix expects a 2026 fiscal year profit of 25 trillion KRW (approximately $16.9 billion), with bonuses for nearly 35,000 employees estimated at 14 million KRW each (about $95,000 or 646,000 RMB).

Overnight, "I work at Hynix" became more valuable than "I work at Samsung."

Some anonymous Hynix employees reported receiving overwhelming marriage proposals, struggling to keep up.

Clip from a Korean variety show

While Hynix celebrates, Samsung Electronics faces labor unrest.

On April 17th, the Samsung Group union demanded a 7% wage increase, removal of bonus caps, and distribution of 15% of operating profits as bonuses, threatening a general strike from May 21st to June 7th.

Image Credit: Korea JoongAng Daily

Experts estimate such a strike could cause Samsung direct losses of $6.9 to $17.7 billion and damage its reputation as an HBM4 chip supplier. Reports suggest both sides have agreed on a 13% bonus.

The Bubble Continues

At this point, the "memory price hike" has transcended the original supply chain fluctuations caused by AI expansion, impacting everyday electronics in various ways.

Contrary to the bold declarations in iFANR comment sections—"I won’t buy! Let the manufacturers feel the pain!"—

Consumer resistance has little effect on memory price hikes.

After all, whether it's AI-specific HBM or DDR/LPDDR chips, the majority of sales go to downstream manufacturers.

Samsung and Hynix would prefer consumers buy nothing, allowing full capacity allocation to HBM and high-performance VRAM, still in high demand from AI giants and tech firms.

Unfortunately, no one knows how long this chaos will last.

No one knows what era AI will usher in, but the current AI bubble undoubtedly marks the end of the golden age of microcomputing science since the 1980s.

Memory is destroying everything.