"According to a December 2025 report from global market intelligence firm International Data Corporation (IDC), the manufacturing of Random Access Memory (RAM), used to store data in devices such as computers and phones, is being reallocated to support AI data centers, rather than being incorporated into phones and PCs. Just as your smartphone runs faster with more memory available, so do AI data centers. As more companies rely on AI tools, the importance of reliable processing power increases,"
"Market analysis firm Counterpoint also expects a slower year for all phone manufacturers. The firm projects global smartphone shipments to decrease 2.1% in 2026. The firm's research suggests that the price for memory could increase 40% through the second quarter of 2026, as a device's memory can represent anywhere from 10% to 20% of the total bill of materials. Larger manufacturers with a broader range of products offered, in terms of price, should fare better than others, according t"
DRAM manufacturing is being reallocated from phones and PCs to AI data centers, increasing demand for memory. AI data centers require more RAM as companies adopt AI tools, raising the need for reliable processing power. IDC expects DRAM supply growth of about 16% year-on-year in 2026, below historical norms. Higher memory costs will raise component expenses for smartphone manufacturers such as Apple, Google, and Samsung. Counterpoint forecasts a 2.1% drop in global smartphone shipments in 2026 and projects memory prices could rise 40% through Q2 2026. Memory can represent 10–20% of a device's bill of materials, potentially increasing average smartphone prices.
Read at Business Insider
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