Could AI Memory Demand Wipe Out Budget Phones?
An AI-driven shortage of key components, especially memory and storage chips, has driven up the price of a range of electronics, including not only DDR5 memory kits and PC solid state drives (SSDs), but also things like game consoles, consumer laptops, and so forth. Will lower-priced smartphones be the next shoe to drop? It could be, according to a Google-translated MyDrivers report.
The site highlights the "continued explosion of demand" to keep AI data centers fed with memory chips, noting that DRAM pricing is significantly higher now than it was just a few short years (up 700% from 2022). This is putting pressure on downstream consumer electronics, and as a result, the site says smartphones priced under 1,500 Chinese Yuan will be more difficult to find next year.
According to the report, Micron and SK hynix dominate the DRAM industry and collectively account for 90% of the world's supply. Both...
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