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Framework nearly doubles memory pricing for 32GB, 64GB Laptop 13 Pro overnight — CEO says absorbing LPCAMM2 supplier hikes would put 'our ability to operate at real financial risk'

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Why This Matters

Framework is significantly increasing the prices of its 32GB and 64GB Laptop 13 Pro models due to a more than doubling of LPCAMM2 memory costs from its supplier. This move highlights the impact of supply chain disruptions and rising component costs on the consumer electronics industry, potentially leading to higher prices for end-users and affecting product availability. The company's strategic response aims to mitigate financial risks while managing existing pre-orders.

Key Takeaways

Framework is adjusting the pricing for its upcoming Framework Laptop 13 Pro, the company announced in a blog post. The company says that its supplier of LPCAMM2 memory updated pricing to be "more than double" its existing inventory, while laptops and mainboards will see increases due to rises in prices for other components.

"We recently received a cost update from our LPCAMM2 supplier that goes far beyond anything we had predicted and anything we’re able to absorb without placing our ability to operate at real financial risk," wrote chief executive Nirav Patel. "Rather than the low-to-mid double digit [sic] percentage increase we had forecast from Q2 to Q3 on LPCAMM2 costs, we received prices that are more than double that of the prior inventory we had brought in."

LPCAMM2 memory is specifically in the Intel Core Ultra Series 3 version of the laptop, while models using AMD Ryzen AI 300 processors are sticking with SO-DIMMs.

But while Patel said the company has enough LPCAMM2 modules to fulfill existing pre-orders, their mix of 64GB, 32GB, and 16GB options doesn't match it exactly. Instead, the company is fulfilling as many orders of 64GB as it can before dropping down to 32GB at the original 32GB price. From there, it will drop certain 32GB to 16GB at that original price. Here's how Patel puts it:

"After evaluating a number of possible paths forward, we’re proceeding on the one that we believe minimizes the impact of this challenge. We have enough 64GB modules in inventory to cover pre-order batches through Batch 4 of laptops and Batch 7 of Mainboards. For orders beyond that configured with 64GB, we’ve updated the order configuration to use a 32GB module at the original 32GB module price. After that, we allocated the remaining 32GB modules to DIY Edition and Mainboard pre-orders configured with 32GB through Batch 4 of laptops and Batch 7 of Mainboards. For DIY Edition and Mainboard orders beyond that configured with 32GB, we’ve updated the order configuration to use a 16GB module at the original 16GB price. Note that because we don’t currently have a Core X7 Ultra pre-built configuration with 16GB of memory, we have not adjusted pre-built orders that originally contained 32GB. That is a configuration we plan to introduce later."

Framework will continue offering 16GB LPCAMM2 modules at $239, but said it will have to increase the cost once those modules run out. But the 32GB modules will now be $800 (they were previously $439), while the 64GB modules in pre-orders going forward will be an eye-watering $1,600, up from $849.

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