AI boom drives up prices for phones, tablets, smartwatches

Smartphone prices are expected to rise due to memory shortages linked to a shift in technology and increased demand from AI data centers. The International Data Corporation projects a 0.9% decline in smartphone market growth next year, with lower-cost devices seeing price increases between 8% and 15%. This trend is driven by manufacturers focusing on AI opportunities, as indicated by McKinsey's report on the $7 trillion global data center investment by 2030. Counterpoint Research predicts a 30% surge in memory prices by the end of this year and an additional 20% in early 2026, affecting not only smartphones but all gadgets reliant on memory.