Smartphone Price Hike: If you are thinking of buying a new smartphone in the near future, it may put a little burden on your pocket. The reason for this is not any new tax or arbitrariness of the brand but the increasing demand for AI across the world and the shortage of RAM created by it. The situation seems to be such that mobile companies can pass on the impact of rising costs directly to customers.
Why did AI boom spoil the game?
In recent times, Artificial Intelligence has completely changed the priorities of the tech industry. Big companies like Google, Microsoft and OpenAI are buying huge amounts of computing power for their AI systems and data centers. To run these systems, high-quality RAM and storage are required, which are more expensive and advanced than the memory used in typical smartphones. This is the reason why memory manufacturing companies are now focusing more on AI and enterprise clients instead of common consumers.
RAM shortage has a direct impact on phone prices
Micron, one of the world’s largest memory companies, recently decided to discontinue its consumer-focused brand. The company clearly says that supplying memory to AI companies is more beneficial because the profits are higher there. Similarly, companies like Samsung and SK Hynix are also increasing focus on high-bandwidth memory (HBM).
The result is that the supply of RAM used in common smartphones is becoming limited. RAM prices have already increased more than double in the last few months and experts believe that this crisis is not going to end soon.
Signs of this have started appearing in the market
The effect of this change is now directly visible in the market. Some companies have silently increased the prices of their phones. For example, a mid-range smartphone from Oppo which came at a fixed price at the time of launch is now being sold at a higher price on online platforms.
Similarly, the availability of the variant with more RAM of a popular budget phone of Samsung has reduced while the model with less RAM is being sold at a higher price. These small changes are a sign that companies are trying to balance rising memory costs.
Will Apple also increase the price of iPhone?
Some time ago there were reports that the price of upcoming iPhone models may increase. However, this does not seem to be happening at the moment. It is believed that Apple had planned its production even before the memory crisis worsened, which has given it some relief. But if this crisis continues for a long time, even premium brands will not be able to completely escape it.
How expensive can phones become in future?
Many big names associated with the tech industry have already indicated that there is little hope of smartphones becoming cheaper in the coming years. Some experts say that after 2026, we may see a continuous increase in prices. Especially flagship phones can become costlier by 7 to 10 percent, while a clear increase in prices is possible in the mid-range and budget segments also.
Not only this, in the coming time, companies can also avoid giving more RAM in budget and mid-range phones to keep the cost low. That means only 8GB RAM can be introduced as the new standard.
Also read:
TECH EXPLAINED: What is E-Waste? Know how this garbage is eliminated
