A sharp rise in AI computing demand is driving up storage chip prices and pushing cost pressure down the supply chain, according to an Odaily report citing China Central Television Finance and prior IDC guidance. Amazon has recently raised prices on several hardware products. Its best-selling entry-level Echo smart speaker moved from $49.99 to $79.99, a jump of about 60%, while the 16GB base e-reader increased from $109.99 to $149.99, or about 36%. Before Amazon’s move, Apple, Microsoft and Dell had already responded to higher costs by raising product prices or reducing the amount of memory included in standard hardware configurations. IDC had previously warned that the global memory shortage could continue until 2027. An industry forecast cited in the report also said storage chip prices may peak in 2028 before gradually easing and stabilizing. The report frames the pricing actions by major tech companies as part of a broader pass-through effect from upstream semiconductor costs to end-user devices.
Surging demand for AI computing power has sharply lifted storage chip prices, with upstream cost increases now filtering down to consumer hardware, according to Odaily, citing China Central Television Finance and prior guidance from market research firm IDC.
Amazon has recently raised prices on several hardware products. The best-selling entry-level model in its Echo smart speaker lineup went from $49.99 to $79.99, an increase of about 60%. The 16GB base version of its e-reader rose from $109.99 to $149.99, an increase of about 36%.
Before Amazon adjusted pricing, Apple, Microsoft and Dell had already responded to cost pressure by raising product prices and reducing the amount of memory included in standard hardware configurations.
IDC had previously warned that the global memory shortage may continue through 2027. The industry forecast cited in the report also said storage chip prices could peak in 2028 before gradually declining and stabilizing.
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