Budget Smartphones Under $100 Vanishing as AI Drives Up Memory Costs
Rising AI-related memory prices are pushing budget smartphones above $100, threatening affordability worldwide including in China.
The era of the sub-$100 smartphone is rapidly drawing to a close, as surging memory prices driven by artificial intelligence demand squeeze manufacturers out of the budget tier entirely. Consumers who have long relied on affordable handsets — particularly in price-sensitive markets — now face a shrinking selection at the lowest price points, with industry pressures showing no signs of reversing.
Memory chips, a core component in every smartphone, have seen their prices climb sharply as AI applications compete for the same supply chains that feed consumer electronics. Smartphone makers operating on razor-thin margins in the entry-level segment find it increasingly difficult to absorb those input cost increases without passing them along to buyers, effectively erasing the sub-$100 category.
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The trend is striking even in China, a market long synonymous with aggressively priced consumer hardware. Chinese manufacturers pioneered the art of delivering capable devices at rock-bottom prices, making the country a bellwether for global budget smartphone availability. If the economics no longer work there, analysts warn, the sub-$100 handset may become a relic in virtually every market.
The broader implication is a potential affordability gap for consumers in developing economies who depend on low-cost smartphones for internet access, mobile banking, and essential communications. As AI investment continues to reshape semiconductor priorities, the downstream effects on everyday technology are becoming increasingly tangible for the world's most price-conscious buyers.
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