Following smartphones, laptops are also becoming more expensive due to the rising cost of memory chips. Lenovo has announced that it has increased the prices of its PCs in some markets.
The company also warned that the memory chip shortage is unlikely to resolve soon and will continue to impact supply. This could lead to even higher prices and limited availability.
It is worth noting that companies like Samsung and Xiaomi have also increased the prices of their smartphones for the same reason.
Why did Lenovo increase the price?
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Lenovo says that rising memory chip prices are negatively impacting its PC business. Procuring memory chips and planning production has become difficult due to price volatility.
The company had purchased memory chips and other essential components in advance to protect itself during the shortage.
This resulted in a higher inventory compared to some competitors. While this helped Lenovo continue production without disruption, this strategy may not work if the shortage continues for a long time.
Like Lenovo, the CEO of Intel has also stated that the impact of the memory shortage is likely to be long-term, and quick relief is not expected.
Why is there a shortage of memory chips?
It would not be wrong to say that the AI boom is playing a major role in rising prices of smartphones and laptops.
Many memory chip manufacturers have shifted their focus from consumer devices to AI servers and data centers, where demand is much higher
and profit margins are better. As a result, fewer chips are available for consumer electronics, leading to shortages.
Additionally, the cost of other components has also increased, adding further pressure on manufacturers and pushing device prices higher.
