Ayaneo Suspends Next 2 Handheld Sales as Component Pricing Becomes “Unsustainable”

Ayaneo, a well-known handheld gaming PC maker, has suspended its preorders for the Next 2 gaming handheld PC due to what the company describes as unsustainable pricing of its materials, making manufacturing and sales impossible. In an update on its Indiegogo page for the Next 2 device, Ayaneo states that the cost of storage has been higher than the company anticipated, surpassing an already inflated price quote. However, after the Chinese New Year, suppliers began providing quotes that exceeded every reasonable level, making Ayaneo’s original lowest price of $1,999 for a device with an AMD Ryzen AI Max 385 processor, 32 GB of LPDDR5X memory, and 1 TB of SSD storage unfeasible. While the company offered more expensive variants with up to a Ryzen AI Max+ 395 SoC, 128 GB of RAM, and 2 TB of storage, even a price tag of $4,299 was insufficient to offset the losses from the costly components. The expensive RAM, very expensive NAND Flash, and AMD SoCs meant Ayaneo would be selling these handheld PCs at a massive loss.

This is where the advantage of larger OEMs comes into play, as they can secure slightly better contracts with memory and storage manufacturers, allowing them to get memory pricing into a somewhat decent range and even absorb losses until they can no longer sell their new PCs. Smaller makers like Ayaneo are not in such a position, and the company was forced to stop offering the Next 2 handheld for sale.

Ayaneo on IndiegogoWhen we launched NEXT 2, storage prices were already at a very high level. At that time, we were already under significant cost pressure. However, considering that many AYANEO fans had been looking forward to this product for a long time, we still decided to release it as planned and open pre-orders so as not to disappoint our supporters.

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.

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.