Surging memory demand linked to $1.5 trillion in targeted AI investments is projected to claim 60 percent of global memory demand by 2027. Budget Android phones priced below $200 are exceptionally vulnerable because memory comprises roughly 60 percent of their total bill of materials. To navigate persistent semiconductor bottlenecks and rising costs, some device manufacturers are now considering using older processors that are one to two years old.
Key points
Artificial intelligence hardware investments are redirecting memory capacity away from af…: Artificial intelligence hardware investments are redirecting memory capacity away from affordable consumer electronics.
Phone makers may rely on legacy processors to circumvent ongoing semiconductor bottleneck…: Phone makers may rely on legacy processors to circumvent ongoing semiconductor bottlenecks.
Production cuts during the current downturn could leave manufacturers unable to meet dema…: Production cuts during the current downturn could leave manufacturers unable to meet demand if markets rebound in CY28.
Sources checked by our analysis pipeline: 1
NEW DELHI: Thinking of buying a new smartphone? You might want to hurry!
Artificial intelligence has already shaken up your work life, changed your daily task flows and even sparked conversations about jobs and the future of work. Now, it is about to hit your budgets.
The AI boom could soon make buying a new smartphone more expensive, particularly if you are eyeing a budget device. Rising memory costs, fuelled by the artificial intelligence industry's growing appetite for components, could push prices of low-end smartphones up by around 30 per cent, forcing buyers to either postpone their upgrades or consider second-hand phones, according to a report by Jefferies.
AI's appetite for memory is driving up costs
The growing demand for memory components from AI companies is putting pressure on global supplies, with the technology expected to account for around 60 per cent of memory demand in CY27. The spending plans of AI players could make matters worse. These companies are targeting capital expenditure of around $1.5 trillion in the same year, which could keep memory prices elevated for several more…
Emergency crews contained a battery fire Thursday morning inside Digital Realty's PDX11 facility in Hillsboro, Oregon, which is leased by Elon Musk's social media company. The incident targets a critical infrastructure hub that became one of the platform's two remaining core sites after a consolidation effort in late 2022. While personnel evacuated safely, potential disruptions to platform server operations remain unconfirmed.
Militaries are accelerating directed-energy programs to resolve the economic imbalance of using expensive interceptors against low-cost unmanned aerial systems. By advancing airborne and ground-based prototypes, major defense forces aim to secure continuous firing capacity to protect critical assets from saturation strikes. These investments demonstrate a shift toward scalable solutions capable of neutralizing cruise missiles and hostile surveillance at the speed of light.
Security decisions established within authorization servers directly govern downstream trust by establishing caller authentication, token lifetimes, and issuance rules. When identity configurations drift or external providers modify claim formats, operational API outages occur that leave engineers troubleshooting endpoints rather than authentication mappings. Treating identity infrastructure as an active architectural control plane prevents multi-tenant data leaks and systemic service failures.