Storage Chip Prices Continue to Rise, Consumer Electronics Industry Under Pressure

Securities Daily Online Reporter Feng Yuyao

Storage chips are experiencing a super cycle driven by AI.

Continuing the upward trend since Q3 2025, storage chip prices have been steadily rising since 2026. Currently, price increases have already begun in the mobile phone sector. OPPO recently issued an announcement titled “Price Adjustment Notice for Some OPPO and OnePlus Products Already on Sale,” stating that due to rising costs of key mobile components, including high-speed storage hardware, the company will adjust prices for some existing products starting March 16, 2026. This increase aims to ensure continued high product quality and user experience.

Guo Tianxiang, Research Manager at IDC China, told reporters that the rise in storage chip prices is due to a shortage of memory caused by the AI infrastructure boom, which has now triggered a chain reaction. “Tightening memory supply and rising prices are reshaping product strategies and pricing logic for consumer and enterprise devices.”

Industry forecasts suggest that, as a major downstream application of storage chips, the smartphone and PC markets may enter a period of “high costs, adjusted product roadmaps, and slowed sales growth.”

Storage Chip Price Increase Likely to Continue Throughout 2026

The storage chip market is at an unprecedented turning point, with demand growth significantly outpacing supply.

“Currently, the structural shortage of DRAM (Dynamic Random Access Memory) and NAND (flash memory) driven by AI data center infrastructure construction has not changed, and industry fundamentals remain strong,” said Wang Xudong, Semiconductor Analyst at Qunzhizhi Consulting. “The supply-demand imbalance is the core reason behind the sharp rise in storage chip prices.”

Wang further explained, “We forecast that in 2026, global sales of AI server-related chips will reach $169 billion, a 55% increase year-over-year, mainly driven by HBM (High Bandwidth Memory) and enterprise SSDs; meanwhile, demand for mature storage products remains relatively stable. On the supply side, we expect global storage capacity to grow only 7-8% in 2026 compared to last year.”

Influenced by these factors, the global storage chip market has seen price hikes since Q3 2025. Industry insiders generally expect this trend to continue throughout 2026.

According to Qunzhizhi Consulting data, global DRAM capacity (excluding HBM) is projected to decrease by about 3% year-over-year in 2026. “In this context, we believe that the tight capacity situation in the global storage industry will be difficult to alleviate, and prices will continue to rise, although the rate of increase may slow,” Wang added.

On February 20, SK Hynix, a major global storage chip manufacturer, issued a strong signal that the storage industry has fully entered a seller’s market. SK Hynix stated that the company’s overall DRAM and NAND inventories are only enough for about four weeks, at historically low levels. From cloud providers like Google and Microsoft to AI companies like OpenAI, and consumer electronics manufacturers, all customers are unable to secure sufficient supply, and repeated orders are further driving up price expectations.

“No customer’s demand can be fully met this year,” SK Hynix emphasized at the meeting. Due to the explosive growth in AI demand and supply constraints such as limited cleanroom space, storage chip prices are expected to continue rising throughout 2026, making this an established trend.

Consumer Electronics Industry Faces Cost Challenges

The rise in storage chip prices has quickly propagated downstream into the consumer electronics industry. Wang Xudong revealed that some mobile phone brands have already adjusted their prices, with increases of RMB 300 to 1,000 for similar models. “This indicates that upstream cost pressures have significantly transferred to end brands and will continue to do so, further driving up terminal prices.”

It is also worth noting that the storage shortage caused by AI’s explosive growth may threaten the survival of some consumer electronics manufacturers. Phison, a leading global NAND flash controller chip maker, CEO Pan Jiancheng, recently analyzed in an interview that the storage chip supply crisis triggered by AI is expected to last until 2030. By the end of 2026, many consumer electronics companies may be forced to halt production or go bankrupt due to lack of memory supply. He based this judgment on the current brutal reality that the DRAM and NAND Flash markets have fully shifted to a “seller’s market.”

Wang Xudong also stated that this round of rising storage prices will further increase the concentration in the mobile phone industry, squeezing out small and medium-sized manufacturers. To offset storage cost pressures, device manufacturers will be forced to focus on high-margin, high-end products. “The main risks are for three types of manufacturers: small and medium brands, those mainly producing low-end models, and suppliers with a single source and weak bargaining power. These entities are less able to withstand cost fluctuations, and their operational pressures will significantly increase.”

Guo Tianxiang also pointed out that, under multiple pressures, the global smartphone market will show a pattern of “shrinking scale + rising average prices.” “Regardless of the severity of the scenario, rising costs will lead to decreased purchasing power and longer upgrade cycles; in mature markets, consumers may offset price increases through financing and installment plans.”

Compared to smartphones, the PC market is experiencing disruptive shocks. “In contrast, white-label manufacturers and low-end (often domestic) manufacturers will face the greatest pressure, including the DIY market popular among gamers. This creates opportunities for large OEMs—by positioning pre-installed models as ‘high cost-performance options,’ they can capture market share from small DIY builders.”

It is also important to note that memory shortages may hinder the growth narrative of AI PCs. Guo Tianxiang further explained, “This will lead to higher prices for AI PCs, lower profit margins for manufacturers, and may force a reduction in memory configurations for new models during critical market promotion periods.”