Nigeria’s Phone Market Faces Potential Price Hike As Memory Chip Costs Surge

Technology experts have warned that handset prices in Nigeria could rise by 15-20 per cent in the coming months if global supply constraints persist into the next quarter.

The projection follows mounting pressure from rising memory chip costs, particularly Dynamic Random Access Memory (DRAM) and NAND components, which are essential to smartphones and personal computers.

According to Bloomberg data, the surge is being driven by heavy global demand linked to the expansion of artificial intelligence infrastructure.

The data also showed that spot prices for DRAM have increased by more than 600 per cent in recent months, while NAND prices have also climbed as artificial intelligence investments boost global storage demand.

Industry analysts described the development as a memory “supercycle,” marking a departure from the sector’s traditional boom-and-bust cycle.

According to the report, “Large-scale artificial intelligence investments by hyperscalers, including Amazon, have shifted fabrication capacity toward high-bandwidth memory production, reducing supply for conventional chips used in consumer devices. Shares of major memory manufacturers have rallied significantly. SK Hynix has seen its stock rise by more than 150 per cent this year. Meanwhile, downstream electronics firms such as Qualcomm.”