Fujifilm is increasing camera prices by as much as €500. The AI memory crisis has impacted the photography industry.

      TL;DR: Starting September 1, Fujifilm will increase prices on five camera models due to the DRAM crisis, with the X100 VI rising by €200 and the GFX100 II by €500. The shortage that has affected smartphones and laptops is now impacting cameras.

      Fujifilm is set to raise the list prices of at least five camera models beginning September 1, attributing this to the global DRAM crisis that has led to increased production costs. The price of the X100 VI will increase by €200 to reach €1,999 ($2,119), while the X-E5, X-T50, and X-S20 will each see an increase of €100. The largest hike is for the medium-format GFX100 II, which will go up by €500 to €8,499, putting it €1,000 above its nearest competitor, the Hasselblad X2D II.

      This issue extends beyond Fujifilm; it reflects a widespread memory shortage affecting various electronics sectors since AI data centers began consuming a large portion of the global DRAM supply. The surge in AI technology has negatively impacted the production of affordable smartphones, as memory manufacturers have shifted wafer capacity towards high-bandwidth memory for AI accelerators, resulting in diminished availability for the LPDDR and DDR chips used in phones, laptops, and cameras. Consequently, manufacturing budget smartphones priced under $100 has become increasingly unviable. Samsung has responded by raising prices for its entire foldable lineup by $100 per model, and Qualcomm is also increasing chip prices significantly, while TSMC is expected to hike manufacturing costs by approximately 10%.

      Camera sensors and image processors rely on the same DRAM and NAND supply chains. Fujifilm predicts that the memory crisis will result in costs of around ¥11 billion by 2026. Canon and Fujifilm have informed their investors that they have secured most of the necessary memory for this year, potentially delaying further price hikes; however, with RAM prices expected to rise an additional 40-50% in this quarter, the situation remains challenging. Additionally, Apple has raised iPhone 17 prices by 10% in Japan due to pressures from currency fluctuations and component costs, and camera manufacturers are facing similar challenges with lower margins to absorb them.

      The latest updates from the EU tech sector, along with insights from our founder Boris and some dubious AI-generated art, are available for free in your inbox each week. Sign up now! Canon, Sony, and Nikon have yet to announce any price increases, but they purchase from the same suppliers and face the same cost issues. The DRAM crisis does not favor any specific product category; it impacts all devices with a processor and memory, from smartphones to laptops to cars to cameras. Notably, camera buyers are likely to notice a €500 price increase more acutely than smartphone buyers will notice a €50 hike, as a GFX100 II is a significant purchase, unlike a typical impulse buy. Fujifilm is the first to implement this price adjustment, and others are expected to follow suit.