0025 GMT - Morgan Stanley analysts are increasingly convinced that Australian retailers are underestimating the impact of higher memory costs on home computers. They think that, while ASX-listed retailers JB Hi-Fi and Harvey Norman view memory inflation as manageable and even a tailwind, equipment manufacturers are guarding their margins. This implies higher home computer prices than retailers currently assume, they warn in a note. Consumers could switch purchases to less powerful machines, but the MS analysts point out that these are typically lower margin. Higher prices could also crowd out demand for other electronic items, they add. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

March 12, 2026 20:25 ET (00:25 GMT)

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