Chip shortage threatens budget smartphones as rising costs lead to higher prices

The economy smartphone market is facing increasing pressure due to the memory chip shortage crisis and rising component costs, which could lead to higher prices or reduced production, especially for models priced below $400. Reports indicate that the increase in memory prices is placing a burden on manufacturers, with an expected decline in demand for low-cost phones as costs rise. This also heightens pressure on companies like Oppo and Xiaomi to maintain profit margins. Additionally, reports forecast a 12% decrease in global smartphone shipments this year, as rising costs disproportionately impact budget segments.

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