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Data centers are draining memory from affordable smartphones

Memory chip manufacturers are prioritizing high-margin AI server contracts over consumer phone production, creating a two-tier market where budget phones lose access to the latest components. Slower devices result, but the deeper shift is in hardware economics: infrastructure powering cloud AI now directly competes with and outbids the mass-market phone segment for the same silicon. The casualty is the sub-$200 smartphone that historically drove digital inclusion in emerging markets, now priced out of current-generation memory technology.