Summary of Key Points
Recently, consumer electronics manufacturers such as Apple and Microsoft have collectively raised prices (for example, the MacBook Air increased by $200, and the iPad Air by $150). The root cause is a 700% surge in the price of regular memory (DRAM) over the past four years. The three major memory companies (Samsung, SK Hynix, and Micron) have been sued by U.S. consumers, who accuse them of collaborating to reduce the production of regular memory under the guise of transitioning to specialized memory for AI (HBM), artificially creating shortages and driving up prices. Both HBM and regular memory compete for the same “chip fabrication wafer” resources, with HBM being more profitable, which has led to a reduction in regular memory production. Due to the extremely high barriers to entry in this industry (costing $15-20 billion to build factories, coupled with technological monopolies and U.S. regulations), no new players can break the monopoly. Even if the lawsuits are won, cheaper memory may not become available again—because AI continues to demand a large portion of HBM production capacity.
Detailed Analysis
1. The collective price increase in electronic devices is mainly due to memory costs
The price hikes by manufacturers like Apple and Microsoft are not just attempts to exploit consumers; they are forced by rising memory costs from upstream suppliers. Even Steve Jobs once complained about these costs, describing them as a “once-in-a-century flood.” For instance, the price of the Apple MacBook Air has increased by nearly 20% despite no changes in its specifications, primarily due to the significant rise in memory procurement prices. All of these additional costs are passed on to consumers—most of the extra money you spend on new computers and phones ends up in the pockets of the three major memory companies.
2. How did the three giants drive up memory prices? They used AI as a cover for coordinated production cuts
The three major memory companies (accounting for 90% of the global market) were sued for collectively reducing the production of regular memory and shifting to the more profitable HBM.
- Methodology: The three companies simultaneously cut back on regular DRAM production, discontinued older models (DDR3/DDR4), and locked in supply. Prices have risen by 700% over the past four years, with another 90% increase in the first quarter of 2026 and another 60% in the second quarter.
- Abnormal behavior: Normally, companies would expand production to capture market share during price surges, but this time they all reduced production, which is what the plaintiffs referred to as “collusive conspiracy.”
- Past history: The three giants were convicted of price manipulation in 2002 and fined $485 million; their executives also faced imprisonment. They were sued again in 2018 but did not win the case. This time, the plaintiffs used Apple’s price increases as evidence to support their claims.
3. AI is taking over memory production: More profitable HBM is squeezing out regular memory
Why don’t the three giants produce more regular memory? Because HBM is much more lucrative and uses the same raw materials.
- What is HBM? Large AI models require rapid processing of vast amounts of data. Regular memory has limited bandwidth, while HBM uses multiple layers of chips stacked together, significantly improving performance. NVIDIA’s AI graphics cards rely on HBM, making it both expensive and profitable.
- Resource competition: Both HBM and regular memory use “wafer” resources, but HBM requires more of them—producing 1GB of HBM consumes three times the amount of wafer space needed for regular memory. As a result, each unit of HBM production displaces three units of regular memory.
- Manufacturer choices: AI companies are willing to pay higher prices, so the three giants naturally shift their production to HBM. For example, Micron has discontinued its consumer-grade Crucial memory brand and focused all its resources on AI customers, locking in supply until 2030, leaving regular memory consumers with limited options.
4. Why can no new players enter the market? The industry barriers are insurmountable
Despite the soaring prices, no new companies are entering the market due to the following challenges:
- Financial investment: Building a memory production factory costs $15-20 billion and takes several years to become operational, making it unaffordable for small firms.
- Technological barriers: The memory manufacturing process is a closely guarded secret that has been developed over decades; even with significant funding, it’s difficult for newcomers to master.
- Regulatory restrictions: U.S. export controls limit access to advanced equipment, preventing new Chinese manufacturers from acquiring the necessary technology.
With these three barriers in place, no new company can quickly challenge the existing monopoly, allowing the three giants to continue raising prices.
5. Even if the lawsuits are won, cheaper memory may not return
The lawsuits are still in their early stages (the court must first determine the legitimacy of the class action). Even if the plaintiffs win:
- Compensation may be obtained, but production capacity will not return: Antitrust settlements typically cover only part of the losses. Since AI continues to demand HBM, regular memory production lines cannot be shifted back to produce regular memory.
- Future price trends: Analysts predict that memory prices will continue to rise until 2027.
- Consumer advice: Buy what you need now; don’t wait if your devices are still functioning. If you do upgrade, only stock up on what you will actually use and avoid acting as a speculator.
In conclusion, the rapid growth of AI is having a significant impact on consumers. The extra money you spend on new computers and phones is contributing to the cost increases in the digital age.