Cheaper Phones Will Be Harder to Find This Year and in 2027, Analysts Warn

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The memory shortage could force companies to stop making phones under $400.

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Budget-conscious phone shoppers could be in for a struggle, and they have AI to thank for it. With memory costs continuing to rise, there could be 22% fewer phones under $400 on the market for the rest of this year and into 2027, according to a new report on Tuesday from technology research and advisory group Omdia.

While premium phones such as the iPhone 17 Pro Max and Samsung Galaxy S26 Ultra, priced well above $1,000, continue to push the envelope of affordability, consumers with tighter wallets willing to forgo fancy features opt for cheaper phones. But if makers of these under-$400 devices are driven out the market, phone buyers with the least economic cushion could be hardest hit.

Analyst Zaker Li said that for phones in that price range, memory manufacturing...

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