The super cycle of storage chip prosperity continues, with a wave of price increases sweeping across the entire consumer electronics industry chain.

“Turns out I’ve already been an aggressive camp when it comes to forecasting memory price hikes, but the actual results show that they are even more aggressive than my earlier judgments.” At Xiaomi’s earnings call on March 24, Xiaomi President Lu Weibing said the pace and magnitude of memory price increases have both exceeded expectations. The impact is not limited to the smartphone industry; all consumer electronics industries may be affected. Driven by a surge in the prices of storage chips, the consumer electronics sector is entering a rare “price-hike wave.” After smartphone makers such as OPPO and vivo announced price increases, PC giant ASUS also warned that the prices of complete systems in the second quarter will rise significantly. Pressure from storage cost increases is also spreading from smartphones and PCs to multiple areas including cloud services. Zhang Huiyuan, Director of Corporate Ratings for the Asia-Pacific region at Fitch Ratings, told reporters that, “The prices of storage chips in 2026-2027 will remain firm. While incremental increases in production capacity can help the industry avoid severe shortages, they cannot completely resolve the problem of insufficient supply.” (China Securities Journal)