tech
The memory shortage shaking Apple and Microsoft is 'existential crisis' for smaller players
While Apple and Microsoft raise prices on key devices to help cover the soaring costs of memory, smaller consumer electronics companies are in dire straits.
TL;DR
- Apple and Microsoft are increasing prices on key devices due to soaring memory costs.
- Smaller electronics manufacturers are struggling to obtain necessary components and deal with increased costs.
- The AI boom is a major driver of the memory crunch, increasing demand from chipmakers.
- Companies like GoPro and Sonos are experiencing financial pressure and warnings due to memory cost increases.
- Micron, a memory chip manufacturer, has seen a significant increase in revenue and profits.
- Memory prices for DRAM have risen dramatically, impacting product development and pricing strategies for smaller companies.
- Large tech companies have leverage with suppliers, while smaller companies face difficulty getting calls answered by memory suppliers.
- The situation is described as an 'absolute existential crisis' for smaller players in the consumer electronics market.