US EditionAI Is Gobbling up the World’s Memory Chips, Sending Smartphone Prices to Record Highs, Report Says
Smartphone prices rise 14% as AI-driven memory chip demand shifts supply to data centers, cutting availability for consumer devices and ending sub-$100 phone models.
- The International Data Corporation said this year that a `tsunami-like shock` in the memory supply chain will cause prices to rise 12.9% and phones under $100 to disappear.
- The AI boom has prompted Asia's largest memory-chip manufacturers to shift capacity toward HBM and AI-driven data centres, reducing DRAM available for smartphones.
- Counterpoint Research found prices for DRAM and HBM hit record highs and nearly doubled this year, while shares of SK Hynix, Samsung and Micron surged and capacity is nearly booked out.
- The IDC warned smaller handset makers face losses while Apple and Samsung are insulated, as manufacturers cut memory and smartphone sales decline 12.9% to 1.12 billion units this year.
- Analysts caution the memory chip shortage will last well into next year, while Elon Musk, CEO of Tesla, and Jensen Huang, CEO of Nvidia, say constrained supply is critical and may prompt chipmaking investments.
13 Articles
13 Articles
AI is gobbling up the world’s memory chips, sending smartphone prices to record highs, report says
A global shortage in memory chips sparked by artificial intelligence has dealt a “tsunami-like shock” to the smartphone industry, pushing prices to all-time highs, according to a new report.
The global memory chip shortage triggered by the artificial intelligence boom has sent a "tsunami-like shock" through the smartphone industry. Phone prices will reach historic highs this year, and some manufacturers may not survive the crisis.
The global memory shortage is making cheap mobile phones permanently unprofitable.
The Chinese smartphone market faces an almost inevitable price rise after several consecutive quarters of price increases in memory and storage chips. According to sources in the supply chain from the Asian country cited today, the cost of DRAM and NAND accumulates increases over 80% year-on-year in some contracts, a pressure that manufacturers can no longer absorb without deteriorating their margins, and that, in some sectors, such as DDR4, are…
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