Tim Martin

So we've seen PC makers like Dell raise prices for some commercial laptops by as much as 30%.

Acer, for some of their budget computers, have reduced the amount of memory that come in certain models.

And with Xiaomi, a Chinese smartphone company, they got rid of the lower memory option for certain lines of phones.

So you can only get the higher memory options which allow them to protect their margins.

Some of the biggest names in tech, your Apples, your Samsungs, your Nintendos, they have ability to buy in advance in bulk before some of these price hikes really take off, but those stockpiles only last so long.

So at some point, they'll be back in the market buying memory at these astronomical prices.

I mean, we've never seen price rises like this so quickly.

We've seen a seven-fold increase for the major types of memory just in the past 12 months or so.

Things have never skyrocketed like this before, and this is posing a new problem to companies.

We're unlikely to see any type of slowdown in these prices for years.

And this creates not just a short-term headache for these tech hardware companies, but sort of almost like an existential evolution that they'll have to think, how do we now compete against this new category of AI to get the really essential components we need?

These skyrocketing prices for the basic components for these products are translating into forecasts for lower sales.

Because their products are becoming more expensive, people are buying fewer of them, which means they have less margin or more pressure on their balance sheets.

This is a new type of threat to the supply chain that companies are really scrambling to try and figure out.

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