Summary
The rise of Artificial Intelligence (AI) is causing a shortage in memory components used in smartphones, leading to a predicted decline in smartphone shipments. Memory manufacturers are focusing more on producing memory for AI data centers, causing fewer resources for consumer electronics like smartphones. This situation could affect smaller smartphone companies more severely, while larger companies like Apple and Samsung may benefit.
Key Facts
- AI's rapid growth is creating higher demand for memory components.
- Memory needed for AI is reducing the supply of memory for smartphones.
- Smartphone shipments are projected to decrease by 12.9% in 2026 due to this shortage.
- Major memory producers, such as Samsung and SK Hynix, are making more memory for AI purposes.
- The shortage has increased prices for DRAM and NAND memory used in smartphones.
- Smaller smartphone brands may struggle with rising costs, unlike larger firms like Apple.
- The memory shortage could cause lasting changes in the smartphone market and prices may not stabilize until mid-2027.
