The demand for NAND by the artificial intelligence (AI) data center industry has caused the selling prices of RAM and SSDs to increase by more than 40% in just a few months. Many electronics manufacturers have issued warnings that the selling prices of their devices will increase this year to cover costs. According to Chinese media, Xiaomi, Oppo, Vivo, and Transsion will reduce device production throughout 2026 due to component shortages.
The most affected will be mid-range and affordable devices as the focus will be on flagship devices only. All four manufacturers are predicted to reduce their device production by between 10-20% throughout this year.
Although an official statement has not yet been released, it is in line with the market situation where the data center industry will take 70% of global memory production this year with the component shortage issue only expected to be resolved in 2029.
