Shortages of DRAM worldwide could result in smartphone sales dropping by 13% this year. Supply for DRAM is facing shortages due to AI companies purchasing high-bandwidth memory in large quantities for their data center servers.
Global supply is reported to be drained until next year, putting those who manufacture smartphones in a tricky position, with prices increasing due to the short demand of memory to accommodate production requirements. This could mean that the market for smartphones is in a crisis.
IDC reports that even if the shortage of DRAM has been solved, memory prices are not expected to return to their prices back in 2025, marking a permanent shift for high-end smartphones and their prices. Apple is reportedly going to absorb the higher costs for short-term plans, but it is not unaffected by these shortages. A report is hinting that Apple will be paying 2x price to Samsung for LPDDR5X memory chips.
