Global Memory Chip Shortage Caused By AI Boom Eliminates Cheap Smartphones
Higher smartphone prices could make it harder for lower-income people to get online, potentially widening the digital divide and threatening mobile internet adoption projections.
• AI data center demand is causing a global memory chip shortage that is making the world's cheapest smartphones disappear.
• Global smartphone prices have risen about 15% this year, while new models cost roughly 25% more than last year.
• Chinese smartphone makers have drastically reduced entry-level projects to prioritize more profitable premium devices and AI.
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1October 5, 2026 22
