‘RAMageddon’ Crisis: Apple & Microsoft Hike Prices Amid Deepening Memory Shortage
A severe global memory chip shortage, referred to as ‘RAMageddon’ by tech enthusiasts, is compelling major consumer electronics companies to significantly increase their prices. Meanwhile, smaller manufacturers are grappling with a potential existential crisis.
Apple has recently increased prices across its entire range of Macs and iPads. Many popular models have seen price hikes of over 20%. The base MacBook Air price has risen from $1,099 to $1,299, the MacBook Pro from $1,699 to $1,999, and the iPad Pro from $999 to $1,199.
On the same day as Apple’s announcement, Microsoft also raised the price of its Xbox Series S by $100 to approximately $500. The company cited memory and storage cost increases of more than 2.5x, with another doubling expected by fall 2027. Apple CEO Tim Cook referred to the memory situation as a “hundred-year flood,” while an Apple spokesperson attributed the extraordinary surge in demand for memory and storage components to the “rapid expansion of AI data centers”.
The crisis is being fueled by AI hyperscalers such as Microsoft, Google, Meta, and Amazon. These companies are redirecting chip fabrication capacity towards high-bandwidth memory (HBM) for AI servers, thereby depriving the consumer electronics market of standard DRAM and NAND. IDC analyst Nabila Popal has described the situation as an “absolute existential crisis” for smaller Android phone makers and budget device brands. These smaller players are unable to compete for supply against the deep pockets of Big Tech. Micron’s CEO has warned that the shortage will persist through 2027, with new fabrication capacity not expected to be online until 2028 at the earliest.
Source: Fortune – Even Apple couldn’t escape the memory chip ‘RAMageddon’ crisis