Storage Price Surge Intensifies! Is the Consumer Electronics Market About to Change Forever? One Article Explains It All

Major consumer electronics companies are raising product prices to offset soaring memory chip costs, leading analysts to forecast a decline in global demand for smartphones, PCs, and gaming consoles this year.

 

On one side, tech giants are racing to build AI infrastructure, massively boosting memory chip demand. On the other, chipmakers are prioritizing higher-margin data center capacity over consumer electronics, fueling explosive price increases in traditional memory.

 

The global memory chip big three—Samsung, SK Hynix, and Micron—have all stated in recent months that they can no longer meet demand. The price surge has also delivered blockbuster quarterly results for these companies.

 

But the memory price boom is now spilling over into consumer electronics.

 

Both IDC and Counterpoint expect global smartphone shipments to fall at least 2% this year—a stark reversal from earlier growth forecasts and the first annual decline since 2023.

 

IDC predicts the PC market will shrink at least 4.9% in 2026, after growing 8.1% last year. TrendForce forecasts gaming console sales to drop 4.4% this year, following 5.8% growth in 2025.

Consumer Electronics Makers Face Tough Choices

Facing relentless memory chip price hikes, several companies have already raised product prices. Industry giants like Apple and Dell are caught in a dilemma: absorb the costs and sacrifice margins, or pass them on to consumers—and risk hurting sales.

 

“Manufacturers may absorb some costs, but given the severity of the chip shortage, consumers will ultimately pay higher prices,” said Emarketer analyst Jacob Bourne. “This will lead to sluggish growth in consumer electronics sales in 2026.”

 

The market widely expects the memory price surge to continue into next year, intensifying pressure on consumer electronics firms. Counterpoint predicts another 40–50% increase in memory prices in Q1 alone, following last year’s 50% rise.

 

“In the past two quarters, we’ve seen prices for certain products rise 1,000%, and they’re still climbing,” said Fusion Worldwide President Tobey Gonnerman. “Consumers will soon see sharp increases in the prices of laptops, phones, wearables, and gaming devices.”

 

Analysts say mid- to low-end device makers—such as TCL and PC giant Lenovo—are hit hardest.

 

In the last three months of 2025, shares of Dell, HP, and Lenovo all declined.

 

TrendForce noted last year that Dell and Lenovo plan to raise product prices by up to 20% in early 2026.

 

HP CEO Enrique Lores said last November that “high” memory costs will force PC price increases. Raspberry Pi CEO Eben Upton wrote in a December blog announcing price hikes that the cost surge is “painful.”

 

Weaker demand could also hurt retailers reliant on electronics sales, such as Best Buy.

Apple’s Advantage

Some analysts believe Apple’s massive scale, strong pricing power, and deep supplier relationships give it far better ability to weather the memory chip storm than smaller rivals.

 

Apple typically keeps flagship iPhone pricing relatively stable. Last year, it absorbed hundreds of millions in tariff-related costs without passing them to consumers.

 

“Apple’s advantage lies in contract pricing (rather than volatile spot pricing), which gives it more favorable terms,” said Morningstar analyst William Kerwin. “But it’s not immune—it may still need to raise prices to offset higher input costs.”