Xin Lang Cai Jing·2025-11-06 07:33Core Viewpoint - A significant price surge in storage chips is occurring in Shenzhen's Huaqiangbei market, leading to increased prices for flagship smartphones from domestic manufacturers, with some models seeing price hikes of 100 to 400 yuan compared to previous generations [1][2]. Group 1: Price Surge in Storage Products - Storage product prices in Huaqiangbei have doubled, with DDR4 memory prices rising from 180-190 yuan to around 400 yuan, indicating a tight supply-demand relationship [5][6]. - The price of a 1TB SSD has increased to 620 yuan, with reports of prices doubling within a month [5][6]. - The current market is characterized by a "fear of heights" mentality among merchants, who are hesitant to stockpile due to the rapid price increases [5][6]. Group 2: Factors Driving Price Increases - The price surge is attributed to a significant shortage of storage chips, particularly driven by the demand from AI applications, which has led to a shift in production focus from traditional DRAM to HBM and DDR5 [7][9]. - Major manufacturers like Samsung and SK Hynix have reduced production of older DRAM products, exacerbating supply constraints [10][14]. - The AI boom has created a "swallowing demand" for storage, with AI servers requiring significantly more DRAM and NAND than traditional servers [10][9]. Group 3: Industry Dynamics and Cycles - The storage industry is characterized by strong cyclical properties, with historical price fluctuations driven by mismatches in supply and demand [13][14]. - The current cycle is distinct from previous ones, as it is primarily driven by AI infrastructure rather than consumer demand [13][14]. - The industry has experienced three major cycles in the past decade, with the latest cycle beginning in 2024, driven by AI-related demand [13][14]. Group 4: Financial Performance of Companies - SK Hynix reported a revenue increase of 39% and a net profit increase of 119% for the third quarter of 2025 [15]. - Jiangbolong's net profit increased by 27.95% to 713 million yuan, while Bawei Storage showed a significant recovery with a 563.77% increase in net profit for the third quarter [17][15]. - Companies like Changxin Storage and Yangtze Memory Technologies are expected to benefit from the ongoing demand for advanced storage products [20][22].