The AI boom is making the world’s cheapest smartphones disappear — SkimNews
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- Samsung, SK Hynix, and Micron — which control over 90% of the global memory chip market — pivoted the majority of their supply to AI data centers in late 2025, causing consumer electronics manufacturers to scramble for inventory, per IDC's Ramon Llamas.
- Chinese phonemakers Xiaomi, Oppo, Vivo, and Huawei, which account for ~60% of global smartphone shipments, have "drastically reduced" entry-level projects and are now prioritizing higher-margin premium devices, per Counterpoint's Ivan Lam.
- Sub-$100 smartphone shipments fell nearly 60% YoY in Q2 2026, with Oppo's Southeast Asia sub-$100 shipments plunging 96% and Africa's dropping 34% YoY in the same period.
- Regional price hikes hit hardest in India (21%), Asia-Pacific (19%), and Middle East/Africa (18%), compared to just 5% in the U.S., per Counterpoint data.
- Entry-level smartphones now cost the poorest 20% the equivalent of 44% of monthly income and 76% for people in sub-Saharan Africa, threatening to derail GSMA's projection of 800 million new mobile internet users by 2030.
- U.S. hyperscaler capex on AI infrastructure is projected to hit $1.3 trillion in 2027, up from $470 billion in 2025, per S&P Global — guaranteeing that memory demand stays fierce.
Why it matters: Entry-level smartphones now cost the poorest 20% the equivalent of 44% of monthly income — and 76% in sub-Saharan Africa — meaning the AI infrastructure boom is no longer just a consumer electronics story but a direct threat to closing the global digital divide.
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