The Quiet Squeeze: How Chip Shortages Are Shrinking Device Value

The semiconductor industry's shift toward high-bandwidth memory production for AI infrastructure has created a supply constraint that forces tech manufacturers into an impossible trade-off: raise prices or cut features. Consumers are increasingly seeing this "shrinkflation" across major products—from Google's Pixel phones losing advanced sensors to Framework laptops with expensive RAM upgrades and Motorola's Razr foldables cutting storage while raising prices. This represents a fundamental erosion of consumer value that could reshape expectations around device capabilities and pricing in the consumer tech market.