AI Data Centers Starve Budget Smartphones of Memory Chips

Certainly! Here’s a polite, respectful, and safe summary of the key points from the provided article:

– The artificial intelligence industry is experiencing a surge in demand for memory chips, a trend overshadowing the smartphone industry.
– This demand is primarily from AI data center operators, leaving smartphone makers with higher prices and a chip shortage, potentially reducing smartphone sales by 13% this year.
– Low-end smartphones are particularly affected as manufacturers focus more on premium products.
– AI-enhanced smartphones are increasingly integrated into latest devices, highlighted by Honor’s Robot Phone which showcases embodied AI.
– Global RAM prices have risen by 20% to 30% year over year, partly due to the diversion of memory components toward AI systems.
– The memory supply constraint is expected to cause a decline in global smartphone shipments, with an anticipated downturn lasting well into 2027.
– The shortage and resultant higher prices are pushing manufacturers to consider paid memory upgrades more frequently.

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