CPU prices set to surge as well... PC and console makers brace with price hikes

Prices of memory components such as DRAM and NAND flash continue to surge with no sign of easing, putting global PC and console makers in a tough spot. Despite concerns over weak demand, finished-product manufacturers that can no longer absorb the higher costs are starting to raise retail prices by double-digit percentages or sharply scale back discounts as a way to cope.
According to industry sources on the 31st, Chinese gaming console maker AYANEO has temporarily suspended preorders for its new handheld console, the AYANEO Next 2. The move comes as soaring memory prices have driven up manufacturing costs. With the cost of purchasing components rising to nearly twice the level assumed in the original pricing, the company faced a situation where every unit produced at the preorder price would incur a loss.Sony Interactive Entertainment (SIE) has also decided to sharply raise prices for its PlayStation 5 (PS5) lineup starting April 2. The standard PS5 model will go up from 549.99 dollars (about 830,000 won) to 649.99 dollars (about 980,000 won), while the PS5 Digital Edition will rise from 499.99 dollars (about 750,000 won) to 599.99 dollars (about 900,000 won). The PS5 Pro will jump from 699.99 dollars (about 1.06 million won) to 899.99 dollars (about 1.36 million won). The portable PlayStation Portal remote player will also increase from 199.99 dollars (about 300,000 won) to 249.99 dollars (about 370,000 won).
Prices of SanDisk storage devices sold at Apple Stores in the United States and elsewhere have also surged. A 4-terabyte (TB) SanDisk Professional PRO-G40 SSD that previously cost 499.95 dollars is now being sold for 1,199.95 dollars, an increase of about 140%. A 1TB SanDisk solid-state drive (SSD) has likewise climbed from around 120 dollars to 360 dollars, roughly a 200% hike.
To make matters worse, prices of central processing units (CPUs), which had shown relatively little volatility, are now starting to move up as well. Citing Nikkei Asia, reports indicate that prices this year for CPUs supplied by Intel and Advanced Micro Devices (AMD) are up an average of 10–15% from a year earlier, while lead times—from order to delivery—have stretched from the previous 1–2 weeks to as long as 8–12 weeks. If CPU prices continue to rise, there is growing concern that PC and laptop prices will increase even more sharply.
Market research firm TrendForce has analyzed that global IT companies such as Dell, HP and Lenovo Group have raised notebook prices this year by at least 15–20% compared with last year. ASUS, unable to withstand the burden of sourcing components amid the memory supply crunch, has also decided to increase its notebook prices in the second quarter of this year by 25–30% year-on-year. ASUS’s average selling price (ASP) for the first quarter has already risen about 15% from the previous quarter, and for the full year it is expected to climb by around 30%.
mkchang@fnnews.com Jang Min-kwon Reporter