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Hadlee Simons \/ Android Authority<\/p>\n
TL;DR<\/p>\n
The demand for AI is fueling a shortage in memory chips for smartphones.
\nThe shortage is causing the price of memory chips to skyrocket.
\nSamsung is reportedly considering raising its smartphone prices due to the increased costs.<\/p>\n
If you\u2019re looking to buy a new phone<\/a> in the near future, you might want to make that purchase sooner rather than later. Samsung may raise its prices soon, and it seems there\u2019s a good chance that other manufacturers will follow suit. Why might your next phone cost you more? The reason is related to the AI boom and memory.<\/p>\n Don\u2019t want to miss the best from Android Authority?<\/p>\n According to a report from Hankyung<\/a>, Samsung is considering raising the prices of its products, including its smartphones. How big of an increase we\u2019re looking at is unclear. But it appears that the price bump could impact the brand\u2019s low- and mid-tier phones. The company is reportedly discussing potential price hikes due to the current memory shortage.<\/p>\n Why is there a memory shortage, and what does it have to do with the AI boom? While some AI features run on-device, like Circle to Search and Magic Eraser<\/a>, more intensive features tend to lean on the cloud. This requires server farms with a large amount of high-bandwidth memory (HBM). As companies like Google and Microsoft double down on AI, the demand for server farms has sharply increased.<\/p>\n Although HBM isn\u2019t used in products like smartphones, it is having an effect on the production of memory chips that are used for consumer products. As the report points out, it\u2019s more lucrative for memory chip makers to focus on HBM, as it\u2019s more than five times more profitable than standard DRAM modules. As a result, fewer resources are being put toward the manufacturing of DRAM. Couple that with the increase in AI phones that require more memory to run AI tasks. All of these factors have led to memory suppliers running low on inventory, which is causing an increase in prices.<\/p>\n It\u2019s worth noting that Samsung isn\u2019t the only company considering price increases. As Reuters<\/a> reports, Xiaomi also blames the memory chip shortage for it raising prices. \u201cCost pressure has transferred to the pricing of our new products,\u201d said Xiaomi President Lu Weibing. \u201cRising costs of memory chips are far beyond expectations and could intensify.\u201d The recently launched Redmi K90 series is priced at priced 2,599 yuan ($366), while its predecessor was 2,499 yuan ($352).<\/p>\n It\u2019s reported that this shortage could last for more than two years. Companies, like Apple, are reportedly already preemptively stocking up on memory chips.<\/p>\n![\"google](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2025\/09\/google_preferred_source_badge_light@2x.png\"\/ "\\"google"){kind=icon}
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