AI and chip shortages driving device costs
The increasing demand for memory chips and electronic components due to investments in artificial intelligence has put pressure on supply chains and driven up production costs for smartphones and computers. It is expected that prices will increase by over 17% for computers and 13% for phones by 2026, which could lead to delays in purchasing devices and further harm lower-income groups. Additionally, the focus on AI components reduces the availability of consumer parts, resulting in decreased shipments and rising market prices.
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