GoPro Inc

Apple and Microsoft are starting to pass higher memory costs on to customers due to the AI boom. Data centers need more memory chips, tightening supply across the electronics market. Apple raised prices on some iPads and Macs, while Microsoft lifted the Xbox Series S price by $100. Smaller hardware companies face greater pressure, with GoPro reporting memory costs jumped 80% to 115% near the end of the first quarter and Sonos also dealing with higher component costs. Micron is benefiting from the same dynamics, gaining pricing power as memory prices rise.

Health tech analyst Stephanie Davis says wearable technology companies can learn from FitBit's past, noting that FitBit faced replacement cycle issues and intense competition after going public, similar to companies like Roomba, Peloton, and GoPro. Davis argues that a hardware-plus-subscription model is more sustainable but warns that pricing subscriptions too high can create user friction. She describes current AI features in wearables as largely a party trick, suggesting the real opportunity lies in targeting users with chronic conditions rather than already healthy individuals. Davis also notes that smaller independent wearable companies struggle to compete against tech giants like Apple and Google, which can integrate devices into broader ecosystems.