**Storage Issues Could Arise For New Smartphones, All Due To AI**
Recent analyses suggest that the smartphone market may encounter increased prices stemming from a chip shortage, intensified by the surge in AI technology. For example, Apple is securing RAM modules from Samsung in advance to guarantee a reliable supply, as even the entry-level iPhone 18 is anticipated to come with 12 GB of RAM. Nevertheless, it’s not merely RAM that could elevate smartphone prices; storage chips are also becoming limited due to the heightened demand from the AI industry.
Gou Jiazhang of Silicon Motion, a pivotal entity in the storage sector, points out an extraordinary shortage impacting all varieties of memory. This deficit is inciting concern, with demand expected to surpass supply in the upcoming year. Suppliers such as Samsung, SK Hynix, and Micron are allocating their HBM3E memory primarily for AI datacenters, which may result in RAM supply complications for smartphones. Moreover, North American hyperscalers are pursuing rapid SSDs to address HDD shortages, as U.S. AI companies are requesting high-capacity SSDs.
**Costly Smartphones Could Be Impacted**
Although Apple and Samsung appear ready to manage storage shortages for their premium products, affordable devices might be adversely affected. In areas like Africa and Southeast Asia, smartphone storage is reportedly dropping from 128 GB to 64 GB. Chinese manufacturers like Xiaomi have also indicated potential price increases driven by rising memory expenses.
In spite of these hurdles, Apple has enhanced the storage in the standard iPhone 17 without raising prices, and the model has garnered consumer approval. It remains unclear whether Apple will elevate prices for the iPhone 18, projected for spring 2027. Samsung’s forthcoming Galaxy S26 series, set for a February release, may also encounter price fluctuations. The effects of the storage dilemma on mid-range phones are yet to be determined.
