The memory crunch might widen the digital divide. To put it somewhat crassly — your DoorDash driver likely doesn't use an iPhone. The end of cheap smartphones could alter the global economy in big ways.
The shift could affect more than consumers looking for cheaper phones. For people who have yet to buy their first smartphone, higher prices could make it harder to get online at all — potentially widening the digital divide. The consequences will also reach the U.S. as more essential services move online and the global supply chain for smartphones becomes more expensive.
GSMA, the global mobile industry association, had earlier said nearly 800 million more people will use mobile internet by 2030. But it is concerned that rising smartphone costs would affect this projection and widen the gap of digital inequality, Claire Sibthorpe, head of digital inclusion at the group’s nonprofit foundation, told Rest of World.
The AI boom is making the world’s cheapest smartphones disappearrestofworld.orgAI data centers are driving demand for memory chips, pushing phone makers to raise prices and abandon some of their most affordable models.