AI capacity crunch drives up consumer tech costs, deepening China's deflation

DIGITIMESSeptember 20, 2026en

Surging AI server demand is reshaping consumer electronics. Memory costs have risen sharply this year, prompting Huawei, Oppo, Xiaomi and Apple to raise prices on some smartphones. A senior Chinese technology industry source said the increase reflects memory suppliers prioritising capacity and investment for AI products rather than stronger handset demand, which is squeezing smartphone memory supply.

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