Billions risk being locked out of the AI revolution due to smartphone costs

The global telecoms industry body GSMA is urging swift action to make smartphones more affordable for those in low- and middle-income nations, so that everyone can "benefit from the AI revolution." The organization has released its State of Mobile Internet Connectivity Report 2026, which highlights a growing "usage gap" as 3.4 billion people remain unconnected despite living within mobile broadband coverage.

GSMA Director General Vivek Badrinath emphasizes that AI's potential to improve lives on a vast scale is undermined if people can't access the internet. He warns that the risk lies not only in an AI divide between countries but also in a divide between people who can participate in the digital economy and those who cannot. The report attributes the widening gap to the significant increase in smartphone memory and chipset costs, driven by global demand for AI infrastructure and data centers.

Memory prices have nearly doubled between Q3 2025 and Q1 2026, and prices for entry-level smartphones are becoming unaffordable for many, especially in sub-Saharan Africa, where they cost up to 44% of the poorest 20% of people's average monthly income. To tackle this issue, GSMA is calling for smartphone manufacturers to reduce the price of entry-level devices to $30, which could make them affordable for nearly 1.6 billion people, and to chipset and memory manufacturers to increase the availability of affordable components.

Additionally, GSMA recommends addressing other barriers to digital inclusion, such as low literacy, digital skills, safety concerns, and the availability of relevant content and services.