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Lenovo CEO warns of accelerating price increases for storage and core components
Thursday, February 5, 2026 at 04:43 PM
Lenovo Group CEO Yang Yuanqing indicated that storage component prices rose 40% to 50% in the previous quarter and may see price hikes double that rate in the current quarter, with inflationary trends spreading to other core hardware components.
Context
Lenovo Chairman and CEO Yang Yuanqing recently warned that storage component prices, which surged 40% to 50% last quarter, could potentially double in the current period. This price volatility is no longer confined to memory alone; the upward trend is rapidly spreading across a broader range of core semiconductor components. Market analysts attribute this sharp acceleration to the massive shift in manufacturing capacity toward High-Bandwidth Memory (HBM) and specialized chips required for AI data centers, which has severely tightened the supply of traditional DRAM and NAND flash.
The timing of these increases is particularly critical as Lenovo and other hardware OEMs face a structural shortage driven by aggressive procurement from cloud service providers. To mitigate these rising costs and potential margin compression, Lenovo has secured long-term "optimal" supply contracts with key vendors to lock in inventory through 2026. Investors are closely monitoring how these supply chain pressures will impact the company’s gross margins, which recently dipped to 15.4% as storage costs now account for over 20% of total laptop bill-of-materials.
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