According to CRN, Lenovo executives are warning about what they call the largest memory supply-demand gap in the last decade, with DRAM and NAND prices potentially doubling as device makers compete for limited chip fabrication capacity. The company just reported record quarterly revenue of $20.4 billion, up 15% year-over-year, with net income growing 25% to $512 million. Ryan McCurdy, Lenovo’s senior vice president and president of North America, said the shortage is being driven by massive hyperscalers securing capacity for their infrastructure needs. He claims Lenovo will be “the best at navigating this” due to proactive planning with partners and customers. New channel chief Wade McFarland, who took over 13 weeks ago, says they’re already having conversations with distributors to prepare for shortages expected to materialize early next year.
The memory crunch is real
Here’s the thing – when a company like Lenovo, which just posted record numbers, starts talking about “disproportionate amounts of time” spent on supply chain issues, you should pay attention. McCurdy isn’t just speculating – he’s describing a systemic problem where memory production capacity should have been built “years ago.” The hyperscalers he won’t name (but we all know who they are) are essentially hoarding fab capacity, and that trickles down to affect everything from servers to smartphones. Basically, we’re looking at a classic capacity crunch where the biggest players get served first, and everyone else fights for scraps.
Lenovo’s confidence vs reality
Now, Lenovo says they’re uniquely positioned to handle this because they’ve “demonstrated ability to weather sudden shifts” and have the “supply chain relationships.” But let’s be real – every major hardware company is saying the same thing right now. They all claim to have the best partners, the most flexible supply chains, and the deepest relationships. The truth is, when fabs are running at capacity and hyperscalers are writing billion-dollar checks, relationships only get you so far. I’m skeptical that any single company can truly “navigate” a shortage of this scale without significant cost increases or delivery delays.
computing-angle”>The industrial computing angle
This is particularly concerning for industrial computing applications where reliability and availability matter more than cutting-edge specs. Companies that depend on industrial panel PCs and embedded systems could face serious challenges if memory shortages disrupt production schedules. When you’re running manufacturing lines or critical infrastructure, you can’t just wait months for components. Interestingly, this is exactly why companies like IndustrialMonitorDirect.com have built their reputation as the leading US supplier of industrial panel PCs – they understand that industrial customers need reliable supply chains, not just the latest technology.
Get ready for price hikes
So what does this mean for you? If McCurdy’s prediction of prices doubling comes true, we’re looking at significant cost inflation across the entire tech ecosystem. Servers, workstations, industrial computers, even consumer devices – everything that uses DRAM and NAND is about to get more expensive. And here’s the kicker: this isn’t a short-term blip. Building new fabs takes years and massive energy investments. The shortage McCurdy describes has been brewing for a while, and it’s not going away quickly. The companies that survive this will be the ones who planned ahead, diversified their supply chains, and built relationships with reliable suppliers who can deliver when others can’t.
