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AI memory demand drives global chip shortage and rising electronics prices
The rapid expansion of artificial intelligence infrastructure is causing a significant memory chip shortage, impacting the consumer electronics market. As data centers prioritize the procurement of high-bandwidth memory (HBM), advanced DRAM, and NAND flash, the supply available for smartphones, PCs, and gaming consoles is diminishing.
Industry analysts from IDC and Counterpoint Research report that this supply crunch is driving up component costs. DRAM prices have reportedly increased fivefold within a single year. Consequently, smartphone manufacturers face a difficult choice: increase retail prices or reduce device specifications to maintain margins. IDC projects the average global smartphone selling price will reach a record USD 581 in 2026. In Indonesia, smartphone shipments fell by 9 percent in Q1 2026, a decline attributed to rising component costs rather than decreased purchasing power.
Major memory players are seeing significant shifts. Sandisk reported $2.98 billion in data center storage sales for its fourth fiscal quarter, with revenue growth of 372% year-over-year. Meanwhile, Xiaomi is adapting to these market pressures by focusing on battery longevity and physical durability in its Redmi Note 17 series, which includes a model featuring a 10,000 mAh battery. Additionally, Xiaomi has introduced its own XRING 03 3nm chipset in the Xiaomi 18 Fold to reduce reliance on external suppliers like Qualcomm.
Entities
Counterpoint Research · Dell Technologies · IDC · Micron Technology · Nvidia · Phison Electronics · SK Hynix · Samsung Electronics · Sandisk · Xiaomi
Claims
What the coverage asserts, and how many sources carry each claim.
- [DISPUTED] The Xiaomi 18 Fold will feature a 200 MP main camera and a 6000 mAh battery. shiftdelete.net · www.haber7.com
- [● 3 SOURCES] The increased demand for high-performance memory in AI data centers is causing supply shortages for smartphone DRAM and NAND chips. www.f5haber.com · www.sondakika.com · geekzilla.tech
- [● 3 SOURCES] The average global smartphone selling price is projected to increase by 27.6 percent to 581 dollars in 2026. www.f5haber.com · www.sondakika.com · geekzilla.tech
- [● 4 SOURCES] Qualcomm is increasing chip prices effective September 1, with some increases reaching double digits. jablickar.cz · www.donanimhaber.com · tinhte.vn · www.netzwelt.de
- [● 2 SOURCES] Memory costs account for approximately 60 percent of the total component cost in smartphones priced under 400 dollars. www.f5haber.com · www.sondakika.com
- [● 3 SOURCES] Apple is reducing its dependence on Qualcomm by developing its own modem solutions, such as the C1X. jablickar.cz · www.donanimhaber.com · www.netzwelt.de
- [○ 1 SOURCE] The price hikes are driven by rising costs in wafer manufacturing, packaging, testing, and memory components. www.netzwelt.de
- [● 3 SOURCES] Global smartphone shipments are expected to fall by 16.7 percent in 2026. www.f5haber.com · www.sondakika.com · geekzilla.tech
- [○ 1 SOURCE] Dell Technologies reported a total order backlog of $95 billion, driven by AI server demand. www.ekoturk.com
- [● 2 SOURCES] The memory shortage may persist until the end of 2030. dijitaliyidir.com
- [○ 1 SOURCE] Global smartphone prices are forecasted to rise by 27.6% in 2026 due to rising component costs. www.karar.com
- [○ 1 SOURCE] NAND flash contract prices are projected to rise by 10% to 15% in the third quarter of 2026. dijitaliyidir.com