A global DRAM shortage was always expected to squeeze smartphones and PCs, but the ripple effects are now hitting a place many people didn’t anticipate: home and office networking gear. New industry data shows routers, gateways, and set-top boxes are increasingly caught in the crossfire—especially brands that don’t have a locked-in memory supply or the leverage to negotiate better pricing. The bottom line for shoppers and businesses is simple: upgrading your network could get more expensive, and soon.
The pressure comes from a surge in memory demand driven largely by AI-focused server hardware. As more DRAM and NAND flash capacity is pulled toward high-margin data center orders, pricing in the broader market has tightened dramatically. Recent figures indicate both DRAM and NAND flash prices have risen by more than 600 percent, a staggering increase that is now filtering down into everyday consumer electronics.
According to the latest monthly trend tracking from Counterpoint Research, the same type of DRAM used in smartphones has climbed roughly threefold over the past nine months. But for broadband and consumer networking products, memory pricing has jumped far more sharply—nearly seven times. One major reason is scale: routers typically ship in far lower volumes than smartphones, which reduces purchasing leverage. Another factor is supply chain strength. Networking OEMs without secure long-term contracts or strong buying power may find themselves paying significantly more to secure components.
This shift is already changing the economics of building lower-cost routers. Counterpoint’s teardown and bill-of-materials analysis suggests DRAM now makes up more than 20 percent of the total BOM for low-to-mid-range routers—up from about 3 percent just a year ago. When one component balloons that quickly, manufacturers either absorb the cost, cut features elsewhere, or pass the increase on to customers. For many entry and mid-tier devices, there isn’t much margin to cushion the blow.
Routers appear to be the hardest hit within the consumer category, particularly for manufacturers with weaker negotiating positions. That puts additional focus on pricing and availability for mainstream Wi‑Fi upgrades, mesh systems, and ISP-provided equipment. Counterpoint also notes that telecom providers should monitor memory pricing closely and prepare to adjust procurement and pricing strategies as needed.
As for market impact in the United States, TP-Link—currently a major player in the router space—has not confirmed whether it will raise consumer prices. Still, with memory representing a growing share of router manufacturing costs, price increases or reduced promotional discounts may become more common if DRAM and NAND pricing remains elevated.
For consumers considering a home network refresh, and for small businesses planning infrastructure upgrades, the message is clear: router pricing may not stay stable for long. If you’ve been waiting to replace aging hardware, expand coverage, or move to newer Wi‑Fi standards, the window for a budget-friendly upgrade could narrow as component costs continue to climb.
