The dream of uber cheap phones for kids and grandparents is effectively dead, thanks to AI

AI-driven demand for memory chips is pushing up component costs across the smartphone supply chain.

That is making sub-$100 phones increasingly unprofitable to build and likely shrinking the low-end market.

Cheaper models used by kids, seniors, and budget buyers could become harder to find as makers focus on higher-margin devices.

Analysts say overall smartphone prices may rise as manufacturers pass on higher bills of materials.