BusinessJul 14, 2026, 9:36 AM

Smartphone sales hit 13-year low as AI chip demand squeezes memory supply - calcalistech.com

30-second summary

Smartphone sales have reached a 13-year low due to high demand for AI chips, which has led to a squeeze in memory supply. This has resulted in a significant decline in smartphone sales worldwide.

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Key takeaways
  • Smartphone sales have reached a 13-year low due to high demand for AI chips
  • The demand for AI chips has led to a shortage of memory supply
  • The shortage has significant implications for the smartphone industry
  • The decline in smartphone sales is expected to continue until the memory supply shortage is addressed
Full story

The increasing demand for AI chips has led to a shortage of memory supply, causing a significant decline in smartphone sales. This shortage has resulted in a 13-year low in smartphone sales, with the industry struggling to keep up with the demand for AI-powered devices.

The high demand for AI chips is driven by the growing need for artificial intelligence and machine learning capabilities in various industries, including smartphones. As a result, manufacturers are prioritizing the production of AI chips over other components, leading to a shortage of memory supply.

This shortage has significant implications for the smartphone industry, with many manufacturers struggling to meet the demand for their devices. The decline in smartphone sales is expected to continue until the memory supply shortage is addressed.

The impact of the AI chip demand on the smartphone industry is a significant example of how the growing need for artificial intelligence and machine learning capabilities is affecting various industries.

Why this matters
Businesses

may need to adjust their production plans due to the memory supply shortage

Investors

should be aware of the impact of AI chip demand on the smartphone industry

Everyone

may experience delays or shortages of AI-powered devices

Sources · 1
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