The manufacturer was reportedly forced to suspend the handheld sales as the SSD prices continue to rise, making it difficult for the vendor to sell it at the announced MSRP.
AYANEO Says the Overall Cost for Making NEXT 2 Handheld Exceeds the Current Selling Price Due to High SSD Prices; Suspends Pre-Orders
We thought the RAM and SSD prices had started to stabilize as we see no drastic increase at major retailers. In fact, the latest market report for Germany showed that the RAM prices have started to decrease this month. While there is no doubt that the RAM and SSD prices are sitting at 3-5X higher than the usual rates, manufacturers are having a very difficult time keeping their businesses alive.
Popular handheld maker, AYANEO, has recently announced a big update on its flagship gaming handheld, the NEXT 2. The NEXT 2 gaming handheld was launched last month at a price tag of $1799 for 32 GB/ 1 TB configuration and boasts either the Ryzen AI Max 385 or the flagship Ryzen AI Max+395 processor for the smooth gaming performance. The company cites significantly higher storage drive costs after the Chinese new year, due to which they have now decided to suspend the NEXT 2 sales.
However, after the Chinese New Year, when we communicated with our suppliers again to confirm the latest storage procurement prices, we found that storage prices had increased to several times higher than before the holiday. Under such circumstances, the overall cost of the product has become far higher than our current selling price. Therefore, after careful consideration, we have decided to suspend the pre-orders of NEXT 2.
- AYENEO
In a blog post, AYANEO announced that the overall production cost for the NEXT 2 has even exceeded the selling price of the handheld. This makes it unfeasible for the company to continue its sales, which is why the company has now removed the product from all of its sales channels. However, users who have already placed ordered on Indiegogo will receive their handhelds. AYANEO has announced that it will still honor the existing orders, but from now on, users won't be able to place pre-orders anymore.
In fact, even before the launch of NEXT 2, storage prices had already been rising for several months. At that time, we believed the price might be approaching its peak. Even if it meant making little to no profit—or even a slight loss—we still decided to move forward with the launch. However, what we did not expect was that storage prices would not only continue to rise but would increase even more rapidly. At present, the total cost of the product has far exceeded our selling price, even approaching twice the price we originally set. Under such circumstances, continuing to sell this product is no longer sustainable.
- AYANEO
The company says it initially wanted to continue the sales after the launch even though the prices were continuously rising, but after the Chinese new year, the storage prices incrased by several times. If what AYANEO says is true, then the NEXT 2 would now cost even above $3000 for its 32 GB/ 1 TB, Ryzen AI Max 385 configuration. Considering, the NEXT 2 with its flagship configuration (Ryzen AI Max+ 395, 128 GB / 2 TB) was announced at $3,499 as early bird pricing, we are sure that the company was already have a hard time selling it at that price tag, let alone the regular price of $4,299.
Good news is that the company hasn't cancelled the NEXT 2 handheld, but has suspended the sales temporarily. Hopefully, when the RAM and SSD prices stabilize, we can see NEXT 2 and its competitors back in the market for cheaper prices.
News Source: Indiegogo
About the author: Sarfraz Khan is a hardware reporter with a focus on PC components and the builder community. With years of experience writing about PC hardware and laptops, his work has been featured on several reputable technology publications. Sarfraz's hands-on experience is demonstrated through his first-person accounts of using and comparing different hardware configurations, providing practical and relatable insights for everyday users. His technical analysis is respected by peers in the enthusiast community and has been cited by specialized hardware sites such as Germany's Igor's Lab.
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