Tag: NAND flash

  • Xiaomi Smartphone Production Drops 40%; iPhone 17 Gains

    Xiaomi Smartphone Production Drops 40%; iPhone 17 Gains

    Key Takeaway

    – Global DRAM/NAND prices have surged dramatically since fall 2025 (e.g., 16GB DDR5 from $37 to ~$200), driven by massive AI demand from companies like OpenAI.
    – Smartphone manufacturing fell 1.7% year-over-year in Q1 2026 to 284 million units, with a projected 16.2% annual decline to 1.051 billion units.
    – Budget smartphone makers are hit hardest: Xiaomi’s production dropped 38%, while Vivo’s fell 8%.
    – Premium manufacturers are more resilient: Samsung’s production rose 2%, and Apple’s surged 20% due to strong iPhone 17 sales.

    Since fall 2025, prices for RAM and NAND flash memory have risen dramatically – 16 GB DDR5 now costs consumers around $200, while the same RAM stick was still being offered for $37 last year. The immense demand for RAM and NAND from AI giants such as OpenAI is not only increasing costs for consumers, but also for manufacturers of products such as desktop PCs, laptops and smartphones. This situation has put a lot of strain on the entire supply chain, making it harder for budget-friendly devices to stay affordable.

    Manufacturing Decline and Inventory Effects

    An analysis by TrendForce shows how the crisis effected various smartphone manufacturers in the first quarter of 2026. In total, only 284 million smartphones were manufactured in the first quarter, 1.7% fewer than in the same quarter of the previous year. According to TrendForce, the DRAM crisis is only having a delayed affect, as smartphone manufacturers still have DRAM inventories from the previous year and fears of further price increases have boosted demand. TrendForce expects production to fall by 16.2 percent to 1.051 billion units over the year as a whole.

    Impact on Budget vs Premium Brands

    However, the data from the first quarter already shows that manufacturers of cheaper smartphones are likely to be hit harder. Xiaomi produced 38 percent fewer smartphones than in the same period last year, while Vivo’s production volume was reduced by 8 percent. Manufacturers with higher average selling prices, on the other hand, are in a better position – Samsung was able to produce 2% more smartphones than the previous year, while Apple’s production volume even increased by 20% due to the popularity of the iPhone 17 series.

    Market Outlook Amidst Crisis

    It seems that the market is now split into two different segments, with premium brands weathering the storm while budget makers are struggling. TrendForce is predicting further declines as the year progresses, which could mean even higher end-user prices for RAM modules. The shortage of DRAM is unlikely to resolve quickly, and this could reshape the smartphone landscape for years to come.


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  • Switch 2 Game Sales Drop Amid Memory Shortage and High Storage Costs

    Switch 2 Game Sales Drop Amid Memory Shortage and High Storage Costs

    Key Takeaways

    1. Memory shortages are affecting gamers’ choices, leading to fewer new game purchases for the Switch 2.
    2. NAND flash prices are rising significantly, with a predicted increase of up to 90% this quarter, impacting storage costs.
    3. Nintendo is negotiating with retailers to keep expandable storage prices steady, but price increases may still occur in the future.
    4. The Switch 2’s storage capacity of 256GB is limiting gamers, causing them to manage files or purchase additional MicroSD Express cards.
    5. The situation may lead to a decline in third-party game support due to high storage costs and potential limitations on game card capacities.

    The memory shortage has yet to trigger a price hike for the Switch 2. However, it is pushing gamers with extensive game collections to make tough choices. A piece from Bloomberg highlights how the increasing costs of NAND flash are raising the prices of MicroSD Express cards. As Nintendo fans rush to clear their storage, they’re buying fewer new titles for the Switch 2.

    AI Data Centers and Memory Demands

    DRAM supplies are being heavily consumed by AI data centers, which also need various types of storage. Takashi Mochizuki refers to a Trendforce report that predicts a rise of up to 90% in NAND contract prices this quarter. In Japan, gamers have already noticed a significant jump in the cost of MicroSD Express cards since the console’s release.

    Nintendo’s Response to Pricing Pressures

    Despite the initial high costs, the price of expandable storage for the Switch 2 remains steady in other areas. However, Mochizuki notes that Nintendo has taken steps to prevent price increases. By negotiating with retailers, the company managed to persuade some to accept a smaller profit margin on first-party accessories. Still, there’s a chance that they might eventually increase the MSRP for the cards or the console itself.

    The Bloomberg article links the memory issue with a downturn in Switch 2 game sales. A financial report from Nintendo revealed that by the end of 2025, there were 2.18 games sold for every console purchased. In comparison, the original Switch had a figure of 3.88 at a similar stage in its lifecycle.

    Sales Trends and Storage Limitations

    While overall sales of the newer handheld are commendable, users are accumulating fewer games. Fans are feeling limited by the system’s 256GB storage capacity. Notably, certain third-party games, such as Final Fantasy 7 Remake Intergrade, require over 90GB for installation. As time goes on, players will either need to buy more MicroSD Express cards or delete some files.

    Due to the potential for the 64GB cartridges to slow down read speeds, publishers like Square Enix have turned to Game-Key Cards. These products come with minimal data pre-loaded on the physical media, leading to large downloads. This situation forces players to manage their Switch 2 storage space carefully.

    Mochizuki warns that this situation might lead to a decline in third-party support. Although higher-capacity game cards could work for some titles, Nintendo might struggle to find a cost-effective solution. Some experts estimate that the prices for memory and storage won’t stabilize until 2028.

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