AI-induced Memory shortage is changing how devices are built, Fairphone says memory now 60% of materials cost — smaller laptop and phone makers are redesigning products and have to test for fake chips
For smaller device manufacturers, rising memory prices are only part of the problem as limited availability forces companies to rethink everything from motherboard designs to procurement strategies.
The ongoing shortage of memory chips is forcing smaller smartphone and laptop manufacturers to rethink their product designs, according to Fairphone. While some companies are changing their designs, others are placing large orders in advance and testing incoming chips for authenticity. For many budget devices, memory now accounts for nearly 60% of the bill of materials, making it a crucial component in product costs.
Fairphone CEO Raymond van Eck stated that memory in phones priced around $400 can make up almost 60% of the overall cost. This poses a significant challenge for companies like Fairphone, as global smartphone shipments are expected to decline by 13.9% in 2023, marking the largest annual decline on record. Finnish phone maker Jolla has implemented a dual motherboard design to adapt to availability issues, and laptop manufacturer Framework relies on its modular approach, allowing users to install salvaged memory or opt for second-hand units.
Despite the challenges, companies are still finding ways to cope with the limited supply of memory chips and adapt their production methods accordingly.
Written by urgent.news from Tom's Hardware's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
