Garmin Watches Face Rising Memory Costs

Garmin's profit margins have been squeezed by rising memory costs, with the average starting price of its watches increasing from around $673 in 2025 to about $1,000 in 2026. The company has already felt the pressure, with its launch prices this year showing a broad jump in cost, particularly for its premium models like the MARQ Gen 3 and tactix 8 Cerakote Edition. As conventional DRAM and NAND prices continue to rise due to increased demand for AI servers, wearable companies are warning that the squeeze could start showing up in 2027.

Conventional memory prices have risen by 20% over the past year, with the average cost of a gigabyte increasing from $0.10 to $0.12. This trend is attributed to high demand from tech companies, which has led suppliers to prioritize AI business and divert resources away from other markets. As a result, wearable companies like Garmin have been affected by the increased costs, with the company's launch prices this year showing a broad jump in cost. Apple, too, has reported that higher memory costs are affecting its profit margins, although no specific details have been provided on how the company is coping with the situation.

As the effects of rising memory costs become more pronounced, wearable companies like Garmin and Apple are exploring alternative solutions to mitigate their impact. Industry insiders report that several manufacturers are investing in new technologies and supply chains to reduce their dependence on conventional memory chips. This shift is expected to lead to more efficient production processes and potentially lower prices for consumers. However, it remains unclear how long these efforts will take to bear fruit, with some analysts predicting a gradual phase-out of traditional memory sources over the next few years. As a result, wearables enthusiasts are advised to keep an eye on future product releases and pricing strategies from their favorite brands.