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[TECHNOLOGY] · United States, United Kingdom, Portugal, Brazil, Italy · 18 sources

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Smartphone prices surge as AI demand drives global memory chip shortage

The global smartphone market is facing significant price increases and shipment declines due to a critical shortage of memory components. Driven by the massive demand for AI infrastructure and data centers, memory chip prices (DRAM and NAND) have surged by more than 300% year-over-year.

IDC predicts that the average selling price for smartphones will reach $581 in 2026, a 27.6% increase, while global shipments are expected to decline by approximately 17%. This trend is particularly impacting the entry-level market, as manufacturers reduce low-cost models to maintain margins. The GSMA has warned that this rising cost of hardware risks widening the global digital divide, potentially excluding billions in low- and middle-income countries from AI-enabled services and the digital economy.

Industry experts offer differing timelines for relief. Acer CEO Jason Chen anticipates that PC and component prices could peak in the first half of 2027 before declining. Conversely, major memory manufacturers like SK Hynix and Micron suggest that supply constraints and high demand could persist through 2030. In the consumer sector, companies like Apple have already implemented price hikes for various models in markets like the UK to offset these rising material costs.

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Acer · Apple · Counterpoint Research · GSMA · IDC · Samsung

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