CNBC reported that sub-$100 smartphones are becoming rare globally, especially in the Chinese market, due to strong AI-driven demand for memory pushing up costs. IDC data shows that global shipments of sub-$100 smartphones declined by nearly 60% year-on-year in Q2 2026. Memory costs now account for nearly 60% of the bill of materials for smartphones priced under $200. To boost profits, Chinese manufacturers like Xiaomi are shifting towards the premium market. For example, Xiaomi this week launched its 18 Fold high-end phone, starting at 10,999 yuan (approximately $1,640). Counterpoint Research estimates that Xiaomi's average selling price has risen by about 30% since 2023 to $197.