Sub-$100 smartphones becoming a rarity as AI memory prices soar
The days of the sub-$100 smartphone may be numbered, including in China.
TL;DR
- The number of smartphones shipped globally for under $100 has significantly decreased.
- AI's demand for memory is a primary driver of increased costs for smartphone components.
- Memory now constitutes a substantial portion of the bill of materials for budget smartphones.
- Manufacturers are moving up-market, increasing average selling prices and reducing their low-end model offerings.
- Companies like Xiaomi and Oppo have seen significant increases in their average selling prices.
- Memory manufacturers are prioritizing higher-value products, leading to supply constraints for cheaper components.
- It is unlikely that prices for smartphones will return to previous lower levels in the near future.