AI Investment Boom Drives Memory Chip Prices Up, Global Smartphone Average Price Rises by $94 in One Year

The AI investment surge is causing memory chip prices to spike, with DRAM prices surging more than sixfold in the past year. This is driving up prices for smartphones, PCs, and other devices, with the global average smartphone price rising by $94 year-on-year. Shipments have fallen by a record margin, raising concerns that AI-induced inflation is cooling consumption.

Source: 日经中文网

The investment boom in artificial intelligence is rippling through the semiconductor supply chain to consumer electronics, pushing up the prices of smartphones, personal computers, and other devices. Research firm IDC expects the global average smartphone price to reach $550 in 2026, up $94 from the previous year. Data from Japanese research firm Nint shows that the average price of smartphones sold via e-commerce channels in Japan was approximately 60,000 yen from January to May 2026, 25% higher than the average in 2024.

Behind the rising terminal prices is a sharp spike in memory chip costs. A June report by Morgan Stanley MUFG Securities noted that DRAM prices have surged more than sixfold over the past year due to supply-demand tightness, reversing a decades-long trend of price declines. The report identifies AI investment as the key factor behind this reversal.

The AI investment has fueled a data center construction boom, causing demand for high-bandwidth memory for AI servers to soar. Memory manufacturers are prioritizing production of higher-margin HBM DRAM, leading to shortages of general-purpose DRAM and driving up prices. A smartphone manufacturer based on the U.S. West Coast reported that older-model low-cost memory used in its devices has risen by $100 from a year ago.

The price increases are affecting a range of electronic devices. Sharp has priced its July-launch AQUOS high-end models in the 160,000 yen range, up 50% from previous models. OPPO and Xiaomi have raised prices on existing mid-range models by several thousand yen. Apple is expected to raise prices on its main iPhone line. In personal computers, Apple raised the price of the MacBook Neo launched in March by 20,000 yen in June, and VAIO, under Nojima, raised prices of personal and business products in April. In gaming, Sony increased the price of the PlayStation 5 by 18,000 yen, and Nintendo raised the price of the Nintendo Switch 2 by 10,000 yen.

IDC has stated that the era of exceptionally cheap smartphones for consumers is over. Global smartphone shipments have fallen by a record margin, and the inflation triggered by AI investment may further dampen consumption.