The recent AI boom has led to a shortage of consumer memory chips, driving up their prices. This will now impact mobile phones, with consumers receiving less RAM than before.

Due to the increased cost of memory chips, RAM may be reduced in new phones.

For some time now, smartphone companies have been offering 16GB of RAM in their phones, but now this is about to become a thing of the past. In fact, companies may soon stop launching phones with 16GB of RAM. This is due to the high cost of memory chips. There has been a shortage of memory chips for some time, and their prices are rising rapidly. Consequently, mobile companies will now reduce RAM to keep phone prices low.

Why is there a shortage of memory chips?

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AI is a major contributor to the memory chip shortage. Chipmakers like Samsung, SK Hynix, and Micron are now developing high-bandwidth AI chips, which are used in data centers. This has led to a decline in consumer memory chips—those used in smartphones, tablets, and laptops. Micron has even stopped manufacturing consumer memory chips altogether and is now producing only chips for AI use. This has led to a shortage and skyrocketing prices. 

Will the 4GB RAM segment make a comeback?

Reports suggest that the shortage of memory chips and high prices will force companies to return to the 4GB RAM segment. Consequently, most entry-level and mid-range smartphones are likely to feature 4GB RAM in their base variants. However, this isn't to say that companies won't launch phones with higher RAM, but this option may only be available in premium smartphones. 

From phones to smartphones will be expensive.

Prices of products using memory chips, such as desktops, laptops, and smartphones, are expected to rise in the coming days. Samsung recently indicated that it may increase the prices of its devices in India. Similarly, laptop manufacturer Dell has said that its product prices could increase by 15-20 percent.