A global memory-chip shortage, driven by AI data-centre demand, has pushed existing smartphone prices up about 15% this year, with new models roughly 25% dearer, according to Rest of World. Samsung, SK Hynix and Micron, which make over 90% of memory chips, have shifted most supply to AI centres, and Chinese phonemakers are cutting entry-level lines; global shipments of sub-$100 phones fell almost 60% year on year in the second quarter of 2026, per IDC. Rises are steepest in India (21%) and Asia-Pacific (19%), and the GSMA (the global mobile industry association) warns that costlier handsets could widen the digital divide for the poorest users, who already spend a large share of income on a basic device.