Cheap Phones Disappearing with AI

The consumer electronics parts market will face severe DRAM memory shortages next year, as artificial intelligence data centers alone consume over 60 percent of annual memory chip production capacity.

• Forecasts show that by 2027, budget smartphones priced around 1,500 yuan (approximately $220) will practically disappear from the market.
• Experts believe that given memory costs have now risen to 60 percent of a smartphone's final price, manufacturers will find it impossible to produce budget models without significantly raising the final price.

# Affordable AI Phones Disappearing / End of the Budget Mobile Era