Soaring memory prices are putting small and medium-sized electronics manufacturers at risk of collapse, highlighting their low profit margins, weak bargaining power in the supply chain, and limited room for price increases.

It has been reported that large corporations are hoarding memory due to the surge in demand, leaving small and medium-sized enterprises (SMEs) unable to cope with the rising costs.

Chip Makers Are Profiting Off AI at the Expense of Just About Everyone Else - WSJ
https://www.wsj.com/tech/ai/chip-makers-are-profiting-off-ai-at-the-expense-of-just-about-everyone-else-fe893bdd

Memory crunch shaking Apple and Microsoft existential for small guys
https://www.cnbc.com/2026/06/27/memory-crunch-shaking-apple-and-microsoft-existential-for-small-guys.html

Why the memory chip 'RAM-ageddon' crisis is causing chaos at Apple and other PC makers | Fortune
https://fortune.com/2026/06/28/apple-mac-price-hikes-memory-chip-shortage-ai-ram-ageddon/

The memory supply-demand gap will keep widening through 2027. That is the real reason Apple is lobbying the White House to keep CXMT off the Entity List. | by Ming-Chi Kuo | Jun, 2026 | Medium
https://medium.com/@mingchikuo/the-memory-supply-demand-gap-will-keep-widening-through-2027-84ca2c2ed130

The manufacturing capacity for 'high-bandwidth memory (HBM),' which is essential for AI, is extremely limited, and building new production facilities will take many years. As a result, the surge in AI demand is driving up prices. At Micron, memory prices have quadrupled in one year, and not only HBM but also memory for PCs and smartphones has seen a significant price increase.

Giant tech companies like Apple and Microsoft have abundant financial resources, negotiating power in their supply chains, and customer bases ranging from millions to billions of people, allowing them to secure the necessary amount of memory and cover any shortfalls by raising consumer prices. On the other hand, many small and medium-sized enterprises (SMEs) have limited profit margins and are not in a position to reliably pass on price increases in an economic environment with persistent inflationary pressures.

One example is GoPro, the developer of action cameras. In its full-year financial results for fiscal year 2025, GoPro reported a decrease in sales of approximately 19% compared to the previous year, and in a document dated June 1, 2026, it stated that 'there are serious doubts about whether we can continue our business for the next 12 months.'

GoPro's business continuity is in 'serious concern' due to rising costs and declining sales caused by a global memory shortage - GIGAZINE

Nabila Popal, an analyst at research firm IDC, commented on the current situation, saying, 'For small Android smartphone manufacturers and regional manufacturers producing devices priced under $100, this is a crisis that threatens their very existence. They will be unable to procure memory because memory suppliers only fulfill orders from large companies.'

On the other hand, even large corporations like Apple face an uncertain future. Apple raised prices in June 2026, and the fact that even a company with such outstanding supply chain capabilities and financial strength as Apple was forced to do so shocked global markets, causing the Nasdaq index to fall 1.4% on the day the price increase was announced.

Apple raises prices across Macs, iPads, and other products; MacBook Air goes up ¥40,000, but iPhones and Apple Watches remain at their original prices - GIGAZINE

Ming-Chi Kuo, an analyst familiar with Apple's affairs, points out that 'the amount of A20 chips Apple procures from the second half of 2026 to the first quarter of 2027 may be 10-20% below its initial target.' According to Kuo, an estimated 15-20% of the memory capacity allocated to consumer electronics in 2026 is expected to move to data centers in 2027, and that percentage could increase further.

Apple is reportedly seeking permission from the Trump administration to purchase memory from the Chinese company CXMT. According to Reuters , CXMT has signed a multi-year contract with Tencent to supply server DRAM chips.