The tech industry faces a significant challenge as the rapid growth of artificial intelligence (AI) data centers is severely impacting the availability of RAM for smartphones and other consumer devices. Qualcomm, a leading player in mobile processing and the manufacturer of Snapdragon chips, has raised concerns about a growing global RAM crisis that is reshaping the production landscape for smartphones and laptops.
According to Qualcomm, the surge in demand for high-bandwidth memory, essential for powering vast AI data centers, is consuming the supply that would typically be allocated to consumer electronics. This shift has placed companies like Qualcomm in a precarious position, as they are prepared with advanced processors, but their partners struggle to source sufficient RAM for production.
Changing Production Dynamics
Qualcomm’s CEO, Cristiano Amon, emphasized that the RAM shortage is fundamentally altering market dynamics. Manufacturers are no longer focused on producing as many devices as possible; instead, they are adjusting production schedules based on the availability of memory components. The supply of DRAM—the standard memory used in smartphones—has significantly decreased compared to figures from just a year ago.
In response to the RAM crisis, many of Qualcomm’s customers are now prioritizing higher-end, premium devices. These models can better absorb the rising costs associated with memory components, providing manufacturers with higher profit margins. While this strategy helps companies remain profitable, it raises concerns that mid-range and low-end devices may see increased prices as the shortage continues.
Competition for Resources
The ongoing “memory crunch” is a consequence of the rapid expansion of AI infrastructure. As companies invest in more powerful data centers, memory manufacturers such as Samsung and Micron are prioritizing high-margin orders over consumer electronics. This situation has led to increased competition in the mobile sector, with even major brands like Apple reporting challenges in securing enough chips to meet demand for their latest products.
From Qualcomm’s perspective, while the current situation is not viewed as a permanent barrier, it represents a substantial hurdle. The company reported exceeding revenue expectations in the last quarter, surpassing $10 billion. Nonetheless, Qualcomm maintains a cautious outlook due to the ongoing supply imbalance. They anticipate that the impact of their own AI data center chips on sales will not be felt until 2027.
As long as the demand for AI data centers remains high, the smartphone industry must remain adaptable. This scenario is likely to influence the technology landscape throughout 2026. For consumers, this trend may mean that “Pro” or “Ultra” models will dominate retail shelves, as manufacturers focus on producing devices that can justify the higher costs associated with premium components.
