The ongoing memory chip shortage is a windfall for Samsung and SK Hynix. New forecasts predict Samsung could see an annual operating profit around 73 billion dollars next year, with SK hynix close behind at nearly 64 billion. Their gains come directly from soaring DRAM and NAND prices hitting the entire tech industry.
These cost spikes are forcing brutal compromises. Smartphone makers might have to use only 4GB of RAM in budget models, and laptop OEMs are considering 8GB as a new standard. Companies like Acer, Dell, and ASUS are preparing significant price hikes across their products. Even NVIDIA is cutting production of its next GPUs due to the memory crunch.
Analysts warn that the smartphone bill of materials could jump by a quarter, likely reducing global shipments. While memory makers profit, device manufacturers and consumers are absorbing the pain. Samsung's foundry business is also now expected to hit profitability earlier due to this favorable market shift.
These cost spikes are forcing brutal compromises. Smartphone makers might have to use only 4GB of RAM in budget models, and laptop OEMs are considering 8GB as a new standard. Companies like Acer, Dell, and ASUS are preparing significant price hikes across their products. Even NVIDIA is cutting production of its next GPUs due to the memory crunch.
Analysts warn that the smartphone bill of materials could jump by a quarter, likely reducing global shipments. While memory makers profit, device manufacturers and consumers are absorbing the pain. Samsung's foundry business is also now expected to hit profitability earlier due to this favorable market shift.
