According to a report by Counterpoint analyst Jeongku Choi, the sharp increase in memory chip prices could potentially dampen consumer demand for electronic devices. Counterpoint data indicates that memory prices have surged by 80% to 90% quarter-to-date in Q1 this year, primarily driven by a sharp rise in the price of Dynamic Random-Access Memory (DRAM) used in general-purpose servers.

The analyst stated that this situation presents a dual challenge for device manufacturers. He added that rising component costs coupled with weakening consumer purchasing power are likely to suppress market demand. He also pointed out that device makers may need to adjust their procurement strategies or focus more on high-end models to mitigate the impact of the price increases.