Low-end smartphones may get costlier as chipmakers shift focus to AI servers

New Delhi: Entry-level and mid-range smartphones are likely to become costlier from the fourth quarter as surging memory chip prices have raised input costs, industry executives and market trackers said.

According to supply chain tracking firm TrendForce, mobile memory chip prices used in mid and low-end smartphones are seeing shrinking supply as manufacturers slash output, diverting capacities toward equipment that offer high-bandwidth memory. Demand for the latter is booming due to the growing AI data center market.