As the RAM crisis bites, has Garmin just hinted at higher prices next year?

Garmin's CEO Cliff Pemble has hinted at potential price increases for devices in the future due to a RAM crisis and rising costs of electronic components. The company had a cache of components and memory bought cheaply before the crisis, but now it is paying significantly higher prices for memory. Pemble stated that pricing is one of the factors Garmin can consider when dealing with increasing device costs.

He advised customers to purchase Garmin products soon as the company's CEO has hinted that pricing changes are not off the table. Garmin's CEO mentioned that while the company is having a good year, there are some headwinds in its near future due to the RAM shortage caused by the massive expansion of AI and the drive to build data centers.

This shortage of memory for consumer devices drives up costs for device manufacturers. However, Garmin has been spared from price increases so far because it bought surplus stock at old prices, but it will now be buying components at higher prices. Pemble mentioned that Garmin is looking at pricing as one of the tools to mitigate cost increases in its supply chain, but they will not overfocus on a single issue. The company will have to wait and see what 2027 brings.