Memory Prices Reach the Shop: China’s Storage Device Prices Up 45%, Phone Prices a Record US$442
Memory prices are being paid by the people who buy phones and computers. China's shop prices for data storage devices rose 45.4% on a year in October, and the world's smartphone buyers paid a record US$442 on average while shipments fell 19%.
Memory prices are being paid by the people who buy phones and computers. China’s shop prices for data storage devices rose 45.4% on a year in October, and the world’s smartphone buyers paid a record US$442 on average while shipments fell 19%.
Global Economy
China’s producer prices rose 5.7% on a year in October, the fastest rise since June 2022, and the factory prices of computers, communication and other electronic equipment rose 5.9%, a wider gain than in September (National Bureau of Statistics, 9 November). The bureau links the month-on-month rise in electronics prices to demand from artificial intelligence. Consumer prices rose 0.7%. Within them, data storage devices cost 45.4% more than a year earlier, tablet computers 29.3%, computers 23.0% and mobile phones 16.7% (header chart). In September the four figures were 46.7%, 23.6%, 21.8% and 14.9%, so three of the four widened in October.
Electronic Equipment Growth
The same thing shows in the world smartphone market. Shipments fell 19% on a year in the third quarter, revenue rose 3% to US$114 billion, and the average selling price rose 27% to US$442, the highest Counterpoint has recorded for a quarter (Counterpoint Research, 3 November; Chart 2). Apple took a record 50% of the quarter’s revenue. PC shipments fell 21% and tablets 23% (Omdia). In the Custer composites, the 24 electronic equipment makers grew 35.4% on a year in 2Q’26 (3/12), with Samsung Electronics’ revenue, which includes its memory business, more than doubling, while the five cell phone makers grew 14.9%.
Semiconductors
The price rise starts in memory. TrendForce puts the rise in conventional DRAM contract prices at 93% to 98% on the quarter in 1Q’26, and forecast 58% to 63% for 2Q’26 and 13% to 18% for 3Q’26 (TrendForce, 1 June and 3 July; Chart 1). Compounded, a contract price of 100 at the end of 2025 becomes roughly 345 to 380 by the end of September (Custer Contexo Group calculation). The 22 memory and storage companies in the Custer composite had revenue of US$171.7 billion in 3Q’26, up 298.3% on a year.
TrendForce’s estimate for 1Q’26 and forecasts for 2Q’26 and 3Q’26.
Source: TrendForce press releases, 1 June and 3 July 2026. Chart: Custer Contexo Group.
EMS and ODM Activity
The assemblers sit between the memory makers and the device buyers, and the cost shows in their margins. Compal’s second-quarter gross margin fell to 4.6% from 5.9% a year earlier; the company named higher component costs, including memory, and said higher selling prices offset part of it (Compal, 13 August). Revenue tells the other half: Wistron’s October revenue rose 117.56% on a year to NT$402.61 billion on AI server demand (company filing). Volume is in servers, and the cost is in memory.
Change on a year earlier. Revenue US$114 billion; average selling price US$442.
Source: Counterpoint Research, 3 November 2026. Chart: Custer Contexo Group.
Materials and PCB Process Equipment
Further up the chain the price rise is smaller and later. The 50 electronic materials suppliers grew 8.7% on a year in 2Q’26 (3/12), the slowest tier, though Nan Ya Plastics’ October revenue rose 64.6% on a year to NT$34.94 billion, with electronic materials more than 60% of sales (Nan Ya Plastics monthly revenue report). Nittobo, which makes the low-expansion T-glass cloth used in AI server boards, said in August that it had no further price increases planned, and in November raised its operating profit forecast to JPY34 billion from JPY30 billion as it expands capacity (Nittobo, via TrendForce, 6 August; Nittobo, 6 November).
Global Electronic Supply Chain Growth
Price carries this cycle at each link. Memory contract prices roughly tripled or more in nine months; memory makers’ revenue rose 298%; device shop prices in China rose 17% to 45%; smartphone buyers paid 27% more and bought 19% fewer phones. Volume is falling where price is rising fastest. The test is the December quarter: if TrendForce’s next contract price reading is flat or lower while China’s device prices are still rising, the price rise has stopped at the memory makers and the retail increases will reverse within two quarters. The November CPI and PPI are due from the National Bureau of Statistics in the second week of December. Contact Jon Custer for an update.
Sources
- National Bureau of Statistics of China, chief statistician Dong Lijuan, interpretation of October 2026 CPI and PPI, 9 November 2026; September 2026 release, 14 October 2026. Trading Economics for the “fastest since June 2022” comparison.
- Counterpoint Research, Global Handset Revenue and ASP report, 3 November 2026 (shipments down 19%, revenue US$114 billion, ASP US$442); Market Monitor shipment report, October 2026 (shipments down 20%).
- Omdia, PC shipments (9 October) and tablet shipments (5 November), third quarter 2026.
- TrendForce, conventional DRAM contract price releases, 1 June 2026 and 3 July 2026.
- Custer Contexo Group company database, company-reported quarterly revenue in US dollars; Business Outlook Electronics charts, 6 November 2026 (equipment makers, cell phone makers and electronic materials composites, 2Q’26; memory and storage, 3Q’26).
- Compal Electronics, second-quarter 2026 results, as reported by Taiwan News, 13 August 2026. Wistron, October 2026 revenue filing. Nan Ya Plastics, October 2026 revenue filing. Nittobo, results of 5 August 2026 (via TrendForce) and 6 November 2026.