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Recently, the consumer electronics sector has taken a significant hit from the skyrocketing prices of memory chips, with low-end smartphones bearing the brunt of the impact. Analysts at Bernstein have noted that the current upward trend in memory chip prices is poised to squeeze camera budgets for budget-friendly Android devices in the coming year. In contrast, high-end Android models and devices within the Apple supply chain are expected to weather the storm with minimal disruption. The surge in memory chip costs can be traced back to a spike in AI-related demand, which has driven suppliers to ramp up production of more cutting-edge chips. Consequently, there's been a scarcity of chips with older specifications, like LPDDR4 and DDR4, creating a notable mismatch between market supply and demand.
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