Apple has reported its best earnings ever, but the pressure of rising memory costs is showing at the same time. According to a Nov 8 report by TMTPost, Apple is facing the challenge of higher memory costs even as it posts record results. The report framed the concern with the question: "If even Apple is starting to worry about memory costs, can you still expect your next phone to get cheaper?" — highlighting the potential impact on consumer electronics pricing.
Cost pressure beneath stellar results
Although Apple's earnings hit a record high, the steady climb in memory costs has become an issue that cannot be ignored. TMTPost reported that Apple is worrying about memory costs, which directly affects the pricing strategy for future iPhones and other products. It remains unclear how Apple will specifically address this cost pressure, but analysts believe that if memory prices continue to rise, the room for cutting end-product prices will be squeezed.
DRAM crisis spreads to game consoles
The game console industry is also being hit by storage price hikes. According to a Nov 8 report by IT之家 citing tech media TechRadar, multiple industry analysts said console makers need to appropriately slow their pursuit of high performance and avoid launching next-gen consoles priced above $1,000 (about 6,691 yuan).
Ampere Analysis analyst Piers Harding-Rolls noted that to avoid excessively high console prices, manufacturers need to adjust product performance targets appropriately. Alinea Analytics analyst Rhys Elliott expects that due to rising costs, the PS5 will continue to sell for a considerable period even after the PS6 launches.
Unlike the previous generation, prices for the PS5 and Xbox Series X|S have not fallen over time but have instead risen. Whether it is the ongoing DRAM memory crisis or the AI boom driving up component costs, it remains unknown whether consumers will be able to buy affordable game consoles in the future.
Analysts: manufacturers may adjust strategy to cope with costs
Facing cost pressure, analysts offer different predictions on how to respond. Piers Harding-Rolls believes that if Sony, Microsoft and Nintendo want consoles to be less expensive, they need to scale back the pursuit of high graphics quality and high performance. Omdia analyst James McWhirter predicts the console market will see clearer tiering in the future — for example, Nintendo may launch a cheaper Switch 2 and offer better value through more bundle packages. In addition, to offset rising component costs, console makers are likely to delay new hardware launch plans.
Storage price hikes reshape end-hardware landscape
From Apple to game consoles, the impact of storage price increases on end hardware is emerging across multiple sectors. The DRAM memory crisis and the AI boom are pushing up component costs, putting consumer electronics pricing strategies under strain. For consumers, whether they can buy affordable phones and game consoles in the future remains uncertain. The industry is watching how Apple and other manufacturers will absorb memory cost pressure, and whether this will trigger a new round of end-product price hikes or configuration changes.