Budget smartphones are the next victim of the memory crisis
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Crystal ball: Following predictions that the memory crisis is going to kill off sub-$500 PCs, we're now hearing that budget smartphones could face the same fate. According to Omdia, global shipments of smartphones priced below $400 will fall 22% this year, causing the overall market to decline 12% YoY.
Omdia writes that, due to the familiar issue of rising DRAM and NAND prices, mid-to-low-end smartphones are struggling with memory costs, leading to the 22% YoY decline. The problem is that phones in this segment are already built to such thin margins that there isn't much left to cut.
In the first quarter of 2026, memory accounted for nearly 60% of the total bill of materials (BOM) in sub-$400 smartphones. In devices priced below $99, that figure exceeded 64%.
Omdia says the memory cost...
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