Why Your Hard Drives and SD Cards Just Got More Pricey

South China Morning Post (SCMP)
South China Morning Post (SCMP)Mar 28, 2026

Why It Matters

Rising storage costs will lift prices across consumer electronics, tightening budgets and reshaping supply‑chain dynamics for manufacturers and end users alike.

Key Takeaways

  • AI demand spikes drive storage component price surges
  • Consumer hard drives up 92% since last December
  • SD cards for cameras double in price amid AI boom
  • Manufacturers shift 80% output to industrial AI infrastructure
  • Expected 15‑20% price rise for PCs, smartphones next year

Summary

The video explains why hard‑drive and SD‑card prices have surged dramatically, linking the spike directly to the artificial‑intelligence boom. In Hong Kong, a 16‑TB enterprise drive is up more than 92% since December, while a camera SD card has more than doubled.

Tech giants are hoarding high‑end chips and storage for AI workloads, prompting manufacturers such as Samsung, SK Hynix and Micron to reallocate capacity toward industrial‑grade components. An industry insider notes the production split has flipped from roughly 60% consumer to an 80/20 split favoring AI infrastructure, squeezing the supply of consumer‑grade drives and flash memory.

The expert warns that this shortage will ripple through the broader electronics market, potentially adding 15‑20% to the cost of desktops, laptops, smartphones and tablets next year. The price pressure is expected to persist at least through the end of the calendar year as AI demand remains robust.

Consumers should brace for higher hardware costs and consider alternative storage strategies, while investors watch for supply‑chain shifts that could reshape the profitability of storage‑device manufacturers.

Original Description

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Photographers and everyday users in Hong Kong are being hit by surging prices for hard drives and SD cards, with some popular models and pro-grade camera cards nearly doubling in just a few months. Manufacturers are diverting production away from low-margin consumer storage into high-end chips and enterprise hardware to feed booming demand for artificial intelligence and data centres, creating shortages on the retail side. Experts warn that basic storage will stay pricey at least until year-end, and the squeeze on memory could push up the cost of desktops, laptops, smartphones and tablets by as much as 15 to 20 per cent next year.
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