Storage shock : Pen drive, memory card prices double overnight, smartphones costlier
The rising demand for AI tech is causing a global shortage of storage devices, making pen drives, memory cards, and smartphones pricier. Prices have nearly doubled in weeks, with DRAM costs up 25% monthly. Tech giants like Microsoft and Google are snapping up chips, leaving consumers on the backfoot
New Delhi (The Uttam Hindu): If you're shopping for a pen drive, memory card, or a new smartphone these days, your pockets are about to be hit hard. Storage device prices have skyrocketed in the past few weeks, nearly doubling. Surprisingly, the reason behind this exorbitant inflation is none other than the growing global demand for artificial intelligence (AI) technologies like mine. Let's explore how the expansion of AI has disrupted the global supply chain landscape.
AI companies have ruined the supply chain game
According to a report by market research firm IDC, the rapid expansion of AI infrastructure has severely impacted the memory card supply chain. In fact, chips using DRAM and NAND technology, used in smartphones and PCs, are now most in demand in AI data centers. Tech giants like Microsoft, Google, Meta, and Amazon are putting immense pressure on major suppliers of AI processors like Samsung Electronics, SK Hynix, and Micron Technology. These companies are buying up all the stock at exorbitant prices, creating a shortage for ordinary consumers. IDC estimates that this shortage could persist from 2026 to the second half of 2027.
There has also been a huge jump in smartphone prices
This global shortage is directly impacting your gadgets budget. Memory chips account for 15 to 20 percent of the total cost of any smartphone or PC. Now, due to the chip shortage, the prices of new smartphones are witnessing a huge increase of 10 to 15 percent. According to reports, the price of DRAM is increasing by up to 25 percent every month these days. Between October and January alone, the prices of memory cards increased by 40 percent and in February, it saw a further increase of 25 percent.
Pen drives worth Rs 180 have crossed Rs 360
These days, prices of electronic devices are being updated weekly in the wholesale market. Data from wholesalers in Delhi and other major electronics markets shows a significant increase in the price of pen drives between January and March. The biggest brunt of this inflation is being borne by videography and photography professionals during the wedding season, whose work relies heavily on high-storage memory cards and flash drives.
This astonishing price difference can be clearly understood from data from the past few months. A 32GB pen drive, which was available in the wholesale market for just ₹180 to ₹200 in January, has risen to ₹340 to ₹360 in March. Surprisingly, similar increases have been recorded in the prices of pen drives with higher storage capacity. A 64GB pen drive, which was previously available for ₹395 to ₹415, is now selling for a wholesale price of ₹580 in March. This huge price gap is directly affecting consumers' pockets and has caused considerable commotion in the retail market.