TECH

DRAM crisis: Canon warns of more expensive cameras

After laptops, smartphones and game consoles, cameras are now also set to become significantly more expensive. Canon is warning of the effects of the ongoing DRAM crisis and plans to pass the higher costs on to consumers in the form of more expensive cameras.

The DRAM crisis, triggered by immense demand for RAM, SSDs and semiconductors for AI data centers, has already led to some extreme price increases for products such as graphics cards, gaming consoles and laptops over the past twelve months, with even the Nintendo Switch 2  already becoming more expensive. Next year, the crisis is also expected to hit cameras.

The global memory crisis, which has already impacted the market for computers, graphics cards, and other electronics, is now reaching the camera industry. Canon has warned that its equipment could become more expensive in 2027 due to rising production costs and difficulties in sourcing electronic components.

This warning was issued in an official Q&A document, released following the presentation of the company’s third-quarter 2026 financial results on October 27. In it, the Japanese manufacturer acknowledged that price pressure on memory components is expected to persist throughout the coming year.

This situation marks a shift in the company’s outlook. Previously, Canon had anticipated that memory costs would begin to decline in the second half of 2027; however, the manufacturer now expects no such reduction throughout the entire year.

Canon intends to pass these costs on to consumers. According to the company, a shortage of printed circuit boards and other electronic components is hindering the supply chain for its factories. To maintain production, Canon states that it is utilizing every available means to secure the necessary materials, even if it incurs additional expenses. The manufacturer explained that its strategy is to offset these higher costs through price increases starting in 2027, while carefully considering the potential impact on sales and profitability.

The effects are already visible in the company’s financial results. Canon revealed that the rising cost of memory, combined with other expenses linked to the situation in the Middle East, has reduced the expected operating margin for its imaging division in the fourth quarter by approximately five percentage points. The company also acknowledged that it has not yet been able to fully pass these additional costs on to its customers.

Artificial intelligence is driving the pressure on memory supplies. The issue is directly linked to the expansion of data centers dedicated to artificial intelligence, which are consuming increasingly large quantities of memory. Although cameras primarily use DRAM as temporary memory for processing images, videos, and sequences of photographs, its production relies on a supply chain that also serves computers, servers, and other equipment.

With semiconductor manufacturers prioritizing products intended for servers, the availability of components for mainstream devices remains limited. A study by TrendForce, published in September, estimated that contract prices for mainstream DRAM would increase by 10% to 15% in the fourth quarter of 2026.

The consultancy also forecasts that DRAM supply will remain under pressure in 2027, as the expansion of production capacity is not expected to keep pace with growing demand. These figures, however, pertain to the memory market and do not represent a price adjustment specifically announced for cameras.

Shortages are already affecting Canon’s camera production...The situation is also hindering the availability of certain equipment. In its financial report, Canon stated that demand for compact cameras remains high, but an insufficient supply of components is preventing production from keeping pace as expected. Despite this, revenue from compact cameras grew by more than 50% in the third quarter.

Meanwhile, sales of interchangeable-lens cameras totaled approximately 620,000 units—a 16% decline compared to the same period in 2025. The company has not yet disclosed which models will be subject to further price adjustments, nor the specific percentages or the markets that will be affected. Consequently, there is no confirmation yet as to how much more Canon cameras might cost in Brazil in 2027.

This warning, however, indicates that the effects of the memory crisis are spreading beyond the computer market, now impacting both professional and consumer photographic equipment.

These supply shortages typically raise costs, as seen across the flash memory space amid increased demand from AI data centers. Companies are bidding for a shrinking supply, driving prices up. Fujifilm alluded to this months ago, and now Canon is discussing it.

“For components that are in short supply, we are using every possible means to secure the quantities we need for next year. As a result, we expect higher procurement costs, but our policy is to offset those increases through price increases from next year onward,” Canon says.

“We have already been making pricing adjustments in response to cost increases as they occur, and we will continue to make decisions on passing on costs from a long-term perspective, while considering the potential impact on sales volumes and balancing that against profitability.”

So there are two really important things to pull out of this quote. First, Canon expects its costs to increase next year. And second, Canon’s modus operandi is to offset increased costs by passing them to the consumer, ergo, increasing product prices. It’s shrewd business, if the market will support it.

It’s not always possible to fully offset increased costs by raising prices. Sometimes markets won’t tolerate the necessary price increases, or a company may be willing to absorb some costs for its long-term prospects. For example, selling more cameras is good for Canon long-term, as it maintains more market share, sells more lenses, etc.

Canon says it will be a balancing act, but, notably, the company is coming right out and telling investors that yes, its policy is to pass increased costs to consumers. This makes perfect sense, but photographers need to hear the news and prepare accordingly.

Canon adds, in response to another question, that it doesn’t expect memory and raw material prices to decline in 2027, so this may be a long-term problem in the photography industry. Much like SSD and memory card prices have continued to increase, cameras may be the next victim.

Canon projects a significantly lower operating profit ratio in its Imaging business in Q4, which the company says is primarily due to higher memory costs and cost increases following the geopolitical strife in the Middle East.

“At this point, we have not been able to fully pass these higher costs on through pricing,” Canon says. “If these higher costs persist next year, we will absorb them through price increases.”

Canon is now warning of this in a Q&A document published alongside the announcement of its financial results for the third quarter of 2026. According to the document, it is becoming increasingly difficult to source electronic components such as mainboards in sufficient quantities, while the costs of sensors and DRAM, which is used as buffer memory in cameras, continue to rise. Canon says it is using "every possible means" to procure enough components for its cameras, but this entails higher costs than usual.

These higher costs are to be passed on to customers through higher prices, although Canon intends to take into account the impact of price increases on sales volumes and thus on profit. In simple terms, Canon is therefore considering absorbing some of the higher production costs itself, but price increases of varying magnitude are to be expected next year in any case. It is also worth noting that Canon had previously assumed that costs would fall again in the second half of  2027, but now believes that costs will continue to rise throughout 2027.

Memory costs have come up at every one of Canon’s earnings calls this year, so the topic itself isn’t new. What is new is the outlook: earlier this year, Canon said it expected memory prices to begin easing in the second half of 2027. Now, according to Canon’s Q3 Q&A summary, it doesn’t expect them to fall next year at all. The company says it has already secured the memory it needs for 2026, but expects to pay more for components in 2027, and that its policy is to offset those higher costs through price increases.

It’s worth noting that this isn’t entirely hypothetical. Canon told investors in July that it had already raised some prices in response to rising costs, including memory, though it didn’t say which products or markets were affected. It says it will continue to weigh further increases against their effect on sales.

Memory is central to how modern digital cameras work. High-speed continuous shooting, pre-capture modes, subject-tracking algorithms and more all lean on fast, plentiful memory. As AI-related demand has driven memory prices up across the industry, camera makers have found themselves competing for the same production capacity as data center operators, which are effectively the 800-pound gorillas in this market.

As a strategy, securing its memory supply early bought Canon time. But it isn’t a long-term solution if the underlying costs persist.

The wider picture...One company warning about costs is one thing. Several camera makers dealing with the same problem at once is another. Other manufacturers have also flagged rising memory costs to investors this year, and some have already started raising prices. That includes the US, where Blackmagic Design has raised prices on some of its cinema cameras and storage products, citing memory costs, and US buyers have already absorbed multiple rounds of tariff-driven price increases since last year.

When multiple camera makers are facing the same cost pressure, the probability that any one of them absorbs it entirely, rather than sharing it with buyers, drops considerably. Ultimately, this isn’t a Canon-specific story but an industry pricing story that happens to be told clearly through Canon’s investor relations disclosures.

Canon reports its full-year 2026 results early next year, and that call will be a useful checkpoint. By then, the company should have a clearer read on what it expects to pay for memory in 2027, and how much of that it plans to pass on to buyers. And because Canon sells more interchangeable-lens cameras than any other manufacturer, its pricing decisions are likely to be closely watched by the rest of the industry.

A Canon alert warns that camera prices could increase in 2027 if high memory costs and component shortages persist.

Key details from canon's warning:

• Cause of the crisis: High global demand for RAM, SSDs, and semiconductors from AI data centers has driven up the cost of DRAM—which cameras use as buffer memory—and mainboards.

• Timeline shift: Canon previously expected memory prices to drop, but now states elevated costs will likely continue into 2027.

• Pricing strategy: Because early stockpiling has run out, Canon told investors it will look to pass persistent production and component costs onto buyers if the squeeze continues.

• Industry-wide impact: Canon is not alone; other manufacturers like Sony and Nikon have also pointed to rising memory costs impacting their imaging divisions, and Blackmagic Design has already raised prices on certain cinema cameras and storage units.

by mundophone