Smartphone prices expected to rise 25% amid memory chip shortage
Business
Bad news if you're planning to buy a new phone soon: smartphone prices are expected to go up by 25% over the next year, thanks to a global shortage of memory chips.
Entry-level phones will feel this the most, and India's smartphone market could see its biggest shipment drop since 2022, with shipments expected to fall by 10-13%.
Chipmakers prioritize high bandwidth AI memory
Chip makers are focusing on high-bandwidth memory for AI tech, which means there's less supply of regular memory chips like DRAM and NAND for phones.
Industry experts say brands now have to rethink phone designs and pricing just to keep up.
Memory alone now makes up about one-fourth of what it costs to build a phone—so companies are scrambling for ways to balance rising costs without losing out on value buyers.