AI-Driven Memory Shortages Threaten Phone Price Hikes Amid Supply Chain Disruptions

The semiconductor supply chain faces unprecedented strain as AI data centers monopolize memory production. SK Hynix and Samsung, key suppliers for both AI servers and consumer devices, are prioritizing high-margin DRAM allocations to Nvidia and other AI infrastructure players. This shift has left smartphone manufacturers scrambling for components.

Counterpoint Research warns of a 2.1% contraction in 2025 handset shipments, reversing earlier growth projections. The crunch hits hardest in budget devices, where material costs have surged 20-30% year-to-date. Memory prices now drive the inflationary spiral, with average device costs projected to jump 6.9% by 2026—nearly double prior estimates.

The collateral damage extends across crypto mining hardware reliant on similar chips. Tokens like ETH, FIL, and ETC face mounting pressure as GPU availability tightens. Exchange-traded products on Binance and Coinbase may see volatility as manufacturers pass through costs.