AI is gobbling up the world’s memory chips, sending smartphone prices to record highs, report says

A new report from the International Data Corporation (IDC) indicates that a global shortage of memory chips, fueled by the booming artificial intelligence industry, is significantly impacting the smartphone market. The shortage, described as a “tsunami-like shock,” is expected to raise the average selling price of smartphones by 14% to a record high of $523 in 2024, and eliminate phones costing under $100. Smartphone sales are predicted to decline by 12.9% in 2026, reaching a level not seen in over a decade. The shift in focus by major Asian memory chip manufacturers towards supplying the AI industry, which requires substantial memory for data centers, has left consumer electronics with limited supply. While larger companies like Apple and Samsung may be able to weather the storm and even gain market share, smaller manufacturers using Android are expected to be more heavily affected. Experts predict the shortage will continue well into next year, with even Tesla CEO Elon Musk expressing concern about its impact on future growth.

(Source：CNN)