The highest increase was 20%! PC manufacturers such as Dell Technologies, Inc. Class C (DELL.US) and Lenovo (00992) are planning to raise prices as storage costs are becoming unbearable.

With the continuous fermentation of the price increase trend in storage, following the mobile phone manufacturers, PC and laptop manufacturers have also begun to feel the pressure. According to various media reports, Lenovo (00992), Dell Technologies, Inc. Class C (DELL.US), HP Inc. (HPQ.US), and others are planning to raise prices, with the highest increase reaching 20%. Among them, Lenovo has already started notifying customers of the upcoming price adjustments. All current server and computer quotations will expire on January 1, 2026, at which time new prices are expected to increase significantly. Lenovo stated that global supply chain pressure has raised memory costs, driving up overall hardware prices. In addition, the deployment of AI applications by enterprises has surged, leading to increased demand for high-performance systems, further exacerbating supply shortages and pushing prices higher. Therefore, Lenovo recommends that customers place orders as soon as possible to lock in purchases at current prices and avoid additional costs due to future price adjustments. Dell Technologies, Inc. Class C has also issued a warning to customers about price increases. Industry insiders indicate that Dell Technologies, Inc. Class C is considering raising prices for PC and server products, with price increases expected to be at least 15%-20%, and the price increase could take effect as early as mid-December. Previously, Dell Technologies, Inc. Class C's Chief Operating Officer Jeff Clarke warned that he has "never seen memory chip costs rise so quickly," and expenses for all product lines are escalating. HP Inc. CEO Enrique Lores also warned that the second half of 2026 "may be particularly difficult," and prices may need to be raised when necessary. He pointed out that memory chips account for about 15%-18% of the cost of a PC. It is reported that due to the rise in memory prices, PC manufacturers are facing increasing profit pressure. Lenovo, HP Inc., Dell Technologies, Inc. Class C, Samsung Electronics, LG Electronics, and others are reevaluating their product plans for 2026, including AI PCs and tablets. It is worth mentioning that a few days ago, Micron announced the termination of the consumer brand Crucial and shifted its focus to meeting the needs of data center-related customers, as these customers have significantly higher profit margins. According to the latest report from TrendForce, the rise in memory prices has significantly increased the material costs of consumer electronics products, forcing brands to raise retail prices, thereby inhibiting market demand. As a result, TrendForce has revised its forecast for laptop shipments in 2026 from a year-on-year increase of 1.7% to a year-on-year decrease of 2.4%. "The memory chip shortage has escalated from a component-level issue to a macroeconomic risk." Sanchit Vir Gogia, CEO of technology consultancy Greyhound Research, warned that AI infrastructure deployment "is colliding with supply chains that cannot meet its actual needs." Many economists and corporate executives warn that long-term storage shortages may drag down AI-based productivity growth, delaying the construction of digital infrastructure worth hundreds of billions of dollars. This may also bring new inflationary pressures in the background of countries' efforts to curb inflation and deal with US tariffs. Huatai expects that the continuous rise in storage prices will put pressure on the consumer terminal industries such as Android smartphones/PCs. On the one hand, the shipment volume of industries in the Android smartphone supply chain may experience a year-on-year decline, and the competitive landscape of brand manufacturers may change. Smartphone manufacturers such as Apple Inc. and Samsung may be less affected by the increase in storage prices, while some manufacturers may need to balance hardware profits with market share. On the other hand, the profit margins of industry chain components may be squeezed, and it is recommended to pay attention to the extent of the decline in production capacity utilization and whether individual industries may engage in price wars. This article is from Finance Network Media; GMTEight Editor: Chen Xiaoyi.