Chipflation—driven by surging AI demand and data center memory production—is forcing chip and memory costs up 70–83% for mobile memory (Q2 2025), squeezing margins across smartphones, PCs, TVs, and automotive. Southeast Asian smartphone prices rose 21% YoY to $375; shipments fell 15% with budget phones (sub-$150) hit hardest (–38%). PC, automotive, and IoT devices face similar pressure, forcing manufacturers to choose between price hikes, spec downgrades, or margin-focused segmentation. Further price increases likely if chip costs stay elevated.