Artificial intelligence raises phone prices.. What’s the story?

The effects of the artificial intelligence boom began to be directly reflected in the smartphone market, after the increasing demand for memory chips used in artificial intelligence data centers led to higher phone manufacturing costs, which pushed prices to rise in a number of markets.

According to a report published by the “TechCrunch” website, India, one of the largest smartphone markets in the world, is witnessing a slowdown in sales in conjunction with the rise in device prices, as a result of chip manufacturing companies shifting to producing advanced memory chips designated for artificial intelligence applications, at the expense of chips used in phones and consumer electronic devices.

The report indicated that major companies, such as Samsung, SK Hynix, and Micron, focused their investments on producing high-performance memory chips needed to operate artificial intelligence systems, which reduced the production capacity allocated to phones, and contributed to increasing the cost of basic components.

Analysts expect pressure on phone prices to continue in the coming months if demand for artificial intelligence infrastructure remains at high levels, at a time when technology companies are rearranging their production priorities to meet the needs of this rapidly growing sector.