Garmin Smartwatches May See Price Hikes Due to RAM Shortages
Global Tech Sector Deficit
During a recent quarterly earnings call, Garmin CEO Cliff Pemble highlighted global challenges that could soon impact product pricing. The primary concern is a shortage of random access memory (RAM), an increasingly acute issue across the technology industry.
The core driver of this memory scarcity is the rapid advancement of artificial intelligence and the massive expansion of data centres. These sectors are consuming a significant portion of available market supply, causing component costs to soar for consumer electronics manufacturers. While smartwatches require less memory than smartphones or PCs, the supply chain crunch has become a tangible threat to Garmin’s operations.
What Awaits Garmin Customers?
According to Pemble, Garmin has managed to avoid price hikes for some time by leveraging stockpiles of memory purchased at older, more favourable rates. However, these reserves are depleting, forcing the company to procure new components at “significantly higher” market prices.
When asked if Garmin plans to increase product prices, the CEO did not rule it out. He noted that price adjustment is one of several tools the company uses to manage costs. Pemble stated that Garmin is working to balance various strategic approaches to avoid sharp price increases for consumers, though the risk remains.
Potential Impact on Global Markets
Garmin’s fitness and outdoor smartwatches are popular worldwide, and any decision to raise prices will inevitably affect international markets, where retail costs are tied to global supply chain fluctuations.
Currently, Garmin is managing the crisis through its diversified portfolio and vertical integration, which allows for greater control over its manufacturing chain. However, Pemble’s comments suggest that 2027 could be a pivotal year. For those planning to purchase a Garmin device, the coming months may offer the most favourable window before the company finalises its cost-optimisation strategies.