The global AI boom is having an unexpected side effect: the cheapest smartphones are disappearing from the market. According to Rest of World, the surging demand for memory chips from AI data centers has pushed component prices upward, forcing phone manufacturers to rethink their entry-level lineups. As production costs rise, companies are either increasing prices or quietly dropping their most affordable models altogether.
This trend is not just a business story—it has real consequences for connectivity. Budget smartphones are often the primary means of internet access for people in lower-income communities, particularly in emerging markets. When those devices vanish or become more expensive, the gap between those who can afford to participate in the digital economy and those who cannot grows wider.
The source notes that this is a direct result of AI infrastructure expansion, not a typical market fluctuation. While the industry focuses on powering data centers, the ripple effects are being felt at the other end of the technology spectrum, where affordability is the key barrier to access. Without intervention or alternative solutions, the cheapest rung of the smartphone ladder may soon be out of reach for millions.}```json can't be parsed? Let's ensure valid JSON. The response should be only JSON object. I'll{