AI-driven shortages of key components, particularly memory and storage chips, are driving up prices for a variety of electronic devices, including DDR5 memory kits and PC solid-state drives (SSDs), as well as game consoles and consumer laptops. Will low-cost smartphones be next? According to Google Translate, they might be. my driver Report.
The site highlights the “continued explosive demand” to keep AI data centers supplied with memory chips, noting that DRAM prices are now significantly higher than they were just a few years ago (up 700% from 2022). This is putting pressure on downstream consumer electronics products, and as a result, it will be even harder to find a smartphone under 1,500 Chinese yuan next year, the site said.
The report raises a number of alarm bells, including that AI companies will lock in long-term orders for memory and storage, further shrinking the supply of consumer products. The company says this will affect low-end smartphones that typically feature DDR4 chips.
If you’re looking for a silver lining, it’s that there are plenty of low-cost smartphones readily available in the market. Here are some examples:
What constitutes a “budget” phone is partially subjective, but whether you draw the line at around $199 or up to around $599, there are plenty of options. We expect this situation to continue beyond 2027.
