An uptick in DRAM prices due to a worldwide shortage is forcing smartphone manufacturers to reevaluate their strategies for next year. A previous report stated that companies could reintroduce entry-level devices with a measly 4GB RAM, while flagships flaunting 16GB of memory could lose significant momentum going into 2026. Some phone makers could also bring back the microSD card for storage expansion, but sadly, new research suggests that none of these implementations could be enough to stave off a decline in shipments next year, as rising DRAM prices could increase smartphone BoM (Bill of Materials) by up to 25 percent.
Research director says sub-$200 smartphone market will likely be impacted the most, with Apple and Samsung having the best position, while others will be left fighting for profit crumbs
Global smartphone shipments are estimated to decline by 2.6 percent in 2026, with Counterpoint Research stating that low-end, mid-range, and high-end models’ BoM costs will increase by 25 percent, 15 percent, and 10 percent, respectively, as a direct consequence of rising DRAM costs. Additional details suggest that Chinese OEMs will suffer the most, with Apple and Samsung holding a stronger position. According to Research Director MS Hwang, devices priced below $200 will be adversely affected.
“What we are seeing now is the low end of the market (below $200) being impacted most severely, with BoM (bill of materials) costs increasing by 20%-30% since the beginning of the year. The market’s mid- and high-end segments have seen 10%-15% price increases.”
Entry-level smartphones already make a ton of compromises in hardware specifications and features, which is why Senior Analyst Yang Wang has commented that low-end devices won’t be ‘not sustainable’ if price increases come into effect. Also, Apple and Samsung have the advantage of being flexible enough with their figures that they can absorb the DRAM cost bumps while maintaining their margins. Sadly, their rivals do not have the same luxury.
“Apple and Samsung are best positioned to weather the next few quarters. But it will be tough for others that don’t have as much wiggle room to manage market share versus profit margins. We will see this play out especially with the Chinese OEMs as the year progresses.”
As a result, Senior Analyst Shenghao Bai says that various smartphone manufacturers will resort to hardware downgrade strategies involving the use of less capable cameras and periscope zoom units, displays, audio parts, and memory configurations. Other approaches could include reusing older parts, while reserving the latest and greatest technologies for premium offerings.
In related news, laptop manufacturers could also make a similar pivot as smartphone companies, cutting down on the total RAM count and providing just 8GB RAM configurations. Thankfully, this dire situation may not linger long enough, as a Sapphire representative has said that DRAM prices should stabilize within six months. However, not everyone shares the same optimism, as a separate report says that DRAM shortages and high prices are expected to persist until at least Q4 2027.
News Source: Counterpoint Research
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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