"The cost structure of a smartphone is heavily dependent on the memory used. For a mid-range device, memory can represent 15-20% of the total bill of materials (BOM), while for a high-end flagship device, it is around 10-15%. As memory prices continue to surge, OEMs will likely have to raise prices significantly, cut specifications, or both."
"According to a December report from IDC, the shortage of DRAM and NAND chips used in PCs, smartphones, and other consumer electronics is putting pressure on the overall market. IDC expects the smartphone market to continue facing pressure this year."
"A Counterpoint Research report from February states that RAM prices are spiking, reaching three times last year's levels. The harshest after-effects will be on the cheapest phones, which operate on already-thin margins and are more likely to see their profits evaporate without a price increase."
The smartphone market is currently facing significant pressure due to supply constraints of memory chips, particularly DRAM and NAND. Phones launched in 2026 have not met expectations, with many experiencing price increases. In contrast, top phones from 2025 are now discounted, making them more appealing. The cost structure of smartphones is heavily influenced by memory prices, which have surged, forcing manufacturers to consider raising prices or cutting specifications. The impact is most severe on budget devices, which operate on thin margins.
Read at ZDNET
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