THE CRUNCH

XMG, a maker of gaming laptops and workstations, reports that DDR5 SO-DIMM prices have increased sixfold since July 2025. The company attributes this surge to broader component cost pressures, including PCBs, CPUs, and graphics cards, and warns that RAM shortages will continue through 2027. To offset these rising upstream costs, XMG has raised prices for most of its gaming laptop models by approximately €100 to €200, with a larger increase of €300 for a professional laptop. The company notes that its margins are fixed and that these hikes are driven solely by higher input prices. This situation mirrors the broader memory market, where desktop RAM has also seen a significant price climb. The company also highlights that geopolitical factors, such as the war in the Middle East, have increased air freight and insurance costs for cargo shipping from Asia to Europe. A representative stated that if input prices fall, retail prices will be adjusted accordingly. This outlook contrasts with Asus CEO Jason Chen’s prediction that component prices will start reversing in the latter half of 2027, suggesting that current high memory costs may be a result of manufacturers retaining high gross margins. The company also drew a comparison to Framework’s strategy, which recently cut memory prices after finding a cheaper source for LPCAMM2 memory.