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AI Demand Drives Up Smartphone Prices, Supply Shortages Loom

12/6/2025

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Summary

Story summary

The rising demand for artificial intelligence is expected to push up prices for smartphones, smartwatches, and tablets.
Memory costs are surging as manufacturers prioritize AI data centers, and the average smartphone price is projected to rise to $465 in 2026 from $457 in 2025, with prices possibly stabilizing later in 2026.
Micron is exiting the consumer memory market to focus on AI-driven demand, intensifying supply shortages for mobile devices.

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Story summary

The rising demand for artificial intelligence is expected to push up prices for smartphones, smartwatches, and tablets.
Memory costs are surging as manufacturers prioritize AI data centers, and the average smartphone price is projected to rise to $465 in 2026 from $457 in 2025, with prices possibly stabilizing later in 2026.
Micron is exiting the consumer memory market to focus on AI-driven demand, intensifying supply shortages for mobile devices.