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Qualcomm looks to smaller AI models as memory costs push up phone prices

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Qualcomm looks to smaller AI models as memory costs push up phone prices

As rising memory costs push up smartphone prices, Qualcomm India says advanced AI capabilities will filter down from premium chips to budget handsets over the next few years, once smaller models improve and the ecosystem matures.

 

Chipmaker Qualcomm expects advanced artificial intelligence features, now mostly found in premium smartphones, to reach more affordable devices over time, though not overnight. The company says the shift depends on leaner AI models and a more developed software ecosystem.

The trend comes as phone makers shift towards higher-priced devices, raising questions about how soon budget buyers will get the latest technology. At the same time, rising memory costs are squeezing the lower end of the market, leaving manufacturers with less room to add expensive features.

Memory costs push prices up

According to reports, Sumit Sonal, head of marketing at Qualcomm India, said the impact is already visible in the entry and mid-range space. “Because of memory price inflation, the entire segment below ₹25,000 has moved up,” he said.

Qualcomm plans to bring technologies associated with its top-tier Snapdragon 8-series processors down to its 7-series, 6-series and 5-series chipsets over the next few years, according to Sonal.

He reportedly said progress in smaller AI models could play a key role here. As these models become better optimised, they can run on less powerful chipsets, including those meant to support agentic AI experiences. “The idea is to bring these capabilities down gradually. As smaller models become more optimised, they can also run on lower-tier chipsets, including those that support agentic AI experiences,” Sonal said.

Why the rollout will be gradual

Smaller models need less computing power, which makes it easier to run certain AI features directly on a phone. Agentic AI refers to systems built to handle multi-step tasks with less step-by-step instruction from the user than ordinary digital assistants require. How well such tools work on affordable phones will depend on the hardware inside them and on how mature the supporting software is.

Sonal said Qualcomm is not in a hurry to push these features into lower-tier chips, since a phone must still have enough processing muscle to run them properly. “We need to let the ecosystem mature before these capabilities can move down to lower-tier chipsets. The market also needs to stabilise before this progress can take place,” he said.

For smartphone makers, the task is to absorb higher component costs while still offering devices across every price band. How fast advanced AI spreads to cheaper phones will depend on how quickly models can be made efficient enough for modest hardware, even as memory prices continue to influence the cost of making handsets.