Phones and laptops becoming increasingly expensive, chip shortage will last until at least 2028

The shortage of memory chips has led to a significant decline in smartphone and computer shipments, with a 20% drop reported by analysts. This scarcity is driven by high demand from AI companies, which are prioritizing chip production for their servers. As a result, manufacturers are producing fewer older, cheaper chips and focusing on newer ones suitable for AI applications. This trend is expected to persist until at least 2028, causing prices for consumer electronics, particularly smartphones and laptops, to rise. Consumers are opting to keep their devices longer or choose refurbished options. Despite the shortages, premium brands like Apple continue to release high-end models, leveraging trade-in programs to maintain accessibility.