Memory will be 30% of the total cost of the product that uses it following incoming price hikes

Memory pricing is expected to increase so high that it will account for 30% of the total cost of the smartphone or any other gadget that uses it.

Memory will be 30% of the total cost of the product that uses it following incoming price hikes
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Tech and Science Editor
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TL;DR: DRAM and NAND flash memory prices have surged nearly 300% since early 2025 due to AI companies dominating supply for data center expansion. This high demand is expected to keep prices rising through 2028, making memory a significant cost-up to 30%-in electronic device manufacturing.

DRAM memory prices have skyrocketed since the beginning of 2025, with estimates now estimating that prices have increased by nearly 300%. In addition to DRAM, NAND flash prices have already increased, and these hikes can be attributed to AI companies pulling manufacturing supply away from the consumer market.

Memory will be 30% of the total cost of the product that uses it following incoming price hikes 561651651
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The thirst for more memory from AI companies isn't expected to be quenched for some time, as billions of dollars have been thrown into the global race to create the most sophisticated AI model possible, and no company participating is expected to just stop building and upgrading the data centers that provide more power to their infrastructure.

Counterpoint Research, a global technology market research firm in the TMT industry, was recently cited by The Wall Street Journal, and explained that AI firms are crowding out other buyers of memory, and the disproportionate supply allocation is due to builders of data centers who are happy paying a premium. MS Hwang, a research director at Counterpoint Research, who has been in the industry for more than 30 years, stated prices are expected to continue increasing, with supply already being allocated to companies for 2026, 2027, and 2028.

"You gotta buy a plane ticket and get that allocation from manufacturers right now. Those guys are now selling their capacity not only for 2026, but also 2027 and 2028," stated Hwang

Additionally, Hwang predicts that memory will soon become one of the most expensive components in any electronic device that requires it, with the analyst stating that memory will become as much as 30% of the total cost to build the product.