Rising global demand for electronic chips is expected to drive up the price of mobile phones worldwide.

This trend matters because the surge in artificial intelligence integration is shifting the cost of hardware onto the end consumer. As memory chips become more expensive to produce and procure, manufacturers are adjusting retail pricing to maintain profit margins.

Muzaffar Paracha, an analyst and commentator on Samaa TV, said that the increasing demand for these components is impacting markets globally, including Pakistan. The shortage is primarily driven by the need for high-performance memory chips, such as DRAM and NAND, which are essential for AI processing.

Data indicates that DRAM prices have risen about 30% year-over-year due to this AI-driven demand [1]. This volatility in the semiconductor market is already reflecting in the pricing strategies of major technology firms.

Apple has increased prices on some MacBook and iPad models by up to 10% to offset these higher component costs [2]. Such adjustments suggest that the trend is not limited to smartphones but extends across the broader ecosystem of portable computing.

While consumers face higher costs, chip manufacturers are seeing significant gains. Samsung’s chip division accounted for 94% of the company’s profit in the most recent quarter [3]. This concentration of profit highlights the critical leverage chipmakers hold during a supply shortage.

Industry analysts said that as long as AI development continues to accelerate, the competition for memory chips will remain intense. This competition limits the availability of budget-friendly components, potentially making entry-level and mid-range smartphones more expensive for the average buyer.

“DRAM prices have risen about 30% year-over-year due to AI demand”

The shift toward AI-centric hardware is creating a structural imbalance in the semiconductor market. Because AI requires significantly more memory bandwidth and capacity than traditional apps, the industry is prioritizing high-end chips over the standard components used in budget phones. This creates a 'trickle-up' price effect where the cost of basic consumer electronics rises even if the devices themselves do not feature advanced AI capabilities.