Global demand for smartphones, PCs, and gaming consoles is expected to decline due to rising memory chip costs. Tech giants like Samsung, Google, and Microsoft are absorbing chip supply, leading to price hikes. IDC and Counterpoint predict a 2% drop in smartphone sales and a 4.9% decrease in the PC market in 2026.

Manufacturers face tough choices as memory chip shortages push up prices. Apple and Dell must decide whether to absorb costs or pass them onto consumers, potentially stifling demand. Intel CEO warns of tepid sales due to inflation. Smaller businesses struggle to secure memory chips, impacting product completion.

Analysts expect low and mid-range device makers like Xiaomi and Lenovo to be most affected by memory chip price increases. Prices are forecasted to rise further, with Counterpoint estimating a 40-50% jump in the first quarter. Consumers can expect higher prices for laptops, phones, and gaming devices soon.

Raspberry Pi, Xiaomi, Dell, HP Inc, and Lenovo have seen share declines amid the chip shortage. Companies like HP and Raspberry Pi have announced price hikes due to chip costs. The weaker demand outlook may impact retailers like Best Buy. Apple, Dell, and Xiaomi are set to report earnings soon.

Apple’s market power and scale may help it weather the chip price surge better than its rivals. The company has maintained iPhone prices and absorbed tariff costs in the past. Analysts note Apple’s contract pricing strategy may provide some protection but raising prices could be necessary to offset higher costs.

Read more at Yahoo Finance: Surging memory chip prices dim outlook for consumer electronics makers