Memory shortages may keep pushing up device and server costs
Micron points to two main causes behind the current shortage: fast-growing demand from and years of strong price pressure from large customers. After the pandemic boom cooled, big buyers pushed memory prices very low, which made it harder for memory makers to justify enough new factory . Demand for DRAM and NAND is now higher than available supply, so prices keep rising.
Apple, Microsoft, HP, Dell, Nintendo, and Samsung have already raised prices on some products. Microsoft raised Xbox prices by $100 to $150, and Apple reportedly raised some MacBook prices by up to 18% and Apple TV prices by 50%. Micron is building a new DRAM factory in Idaho that is expected to start in 2027, but new supply will take time to matter.
Some forecasts expect the shortage to continue through 2027 and improve only gradually in 2028.
Key points
- Micron links the shortage to AI demand and earlier low-price pressure from customers.
- DRAM and NAND supply is tight, which can raise the price of computers, phones, consoles, and servers.
- Several large ics companies have already raised prices.
- Micron’s new Idaho DRAM factory is expected to begin in 2027, so relief is not immediate.
- Solo web and app operators should plan for possible increases in device, cloud, and AI tool costs.