Smartphone sales could be in for their biggest drop ever. RAMageddon is wreaking havoc on smartphone shipments and prices, according to a recent report from the International Data Corporation (IDC). The report predicts a 12.9% decline in smartphone shipments this year, marking the lowest annual shipment volume in over a decade. At the same time, the average selling price for smartphones is set to hit new highs, with a projected 14% increase to a record $523. The RAM shortage, caused by memory-hungry AI giants, is affecting more than just smartphones. Big AI companies like Microsoft, Amazon, OpenAI, and Google are buying up most of the available memory chips for use in AI datacenters. This has led to price hikes for devices from Raspberry Pi, Framework, and even Samsung. The crunch may also push back the launch of certain products, like the PlayStation 6 and Meta’s next headset. The memory shortage is expected to impact budget-friendly Android smartphones the most, as the rising costs of components leave them with no choice but to pass the costs on to end users. This could result in smaller brands exiting the industry, while allowing Apple and Samsung to grab more market share.
