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Retailers of laptops and smartphones are coming under increasing pressure as the cost of memory chips rises, forcing many to choose between raising prices and accepting thinner profit margins in a competitive consumer electronics market.
Memory chips, particularly Dynamic Random Access Memory (DRAM) and NAND flash memory, are among the most essential components in smartphones, laptops, tablets and artificial intelligence-enabled devices.
After nearly two years of oversupply and weak prices, the global memory market has entered a new upcycle driven by stronger demand for AI servers, premium smartphones and high-performance computing.
The rebound has pushed up procurement costs for electronics manufacturers, with the impact gradually filtering down to distributors and retailers.
The pressure is expected to be more pronounced in emerging markets such as Nigeria, where imported electronics are already affected by currency depreciation, high shipping costs and import-related expenses.
Manufacturers have begun adjusting wholesale prices, leaving retailers with options of passing the higher costs on to consumers, reducing their profit margins, or focusing on selling older inventory purchased before the price increases.
For buyers, rising memory chip costs mean much more than just paying a higher price for a new laptop or smartphone. They are likely to experience several effects across the market.
Higher prices for new devices
The most immediate impact is higher retail…
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Read Full Article by Folake Balogun at businessday.ng
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