A global supply crunch in memory chips is driving up production costs for electronic devices, posing an existential threat to smaller companies. Mono Technologies, a startup that makes router development kits, has seen its cost for 8 gigabytes of DRAM rise from $35 to $300. This increase is forcing the company to consider either raising the price of its product by at least one-third or introducing a new model with reduced memory. The memory shortage is affecting companies across the consumer electronics market, from iconic devices like iPads and Xbox consoles to niche products. While tech giants like Apple and Microsoft have announced price hikes, smaller companies are struggling to stay afloat. Analysts warn that the situation is an 'absolute existential crisis' for companies that make devices below $100, as they may not be able to secure the memory they need. Memory suppliers like Micron are prioritizing large customers, leaving smaller companies to scramble for supplies. The shortage is also affecting other industries, including telecommunications and medical devices. Companies are being forced to get creative to manage the crisis, with some exploring new product designs or seeking out alternative suppliers. As the situation continues to unfold, it's clear that the memory shortage will have far-reaching consequences for the consumer electronics industry.

Source: CNBC