"While memory prices are projected to stabilize by mid-2027, they are unlikely to return to previous level. The sub-$100 phone segment will become permanently uneconomical. The RAM shortage is going to affect much more than just smartphones as big AI companies like Microsoft, Amazon, OpenAI, and Google continue to buy up most of the available memory chips for use in AI datacenters."
"The memory shortage is expected to impact budget-friendly Android smartphones the most, as the rising costs of components leave them with no choice but to pass the costs on to end users. That could result in smaller brands exiting the industry, while allowing Apple and Samsung to grab more market share."
"Smartphone shipments to plummet 12.9 percent this year, marking its lowest annual shipment volume in more than a decade. At the same time, the average selling price for smartphones is set to hit new highs, with IDC predicting a 14 percent increase to a record $523."
The smartphone industry faces a record decline in 2026 with shipments projected to drop 12.9 percent, the lowest volume in over a decade. Memory prices driven by AI giants' datacenter demands are pushing average smartphone prices to $523, a 14 percent increase. Budget phones under $100 will become permanently uneconomical as memory costs remain elevated even after stabilizing mid-2027. The RAM shortage extends beyond smartphones, affecting Raspberry Pi, Framework, Samsung, and potentially delaying PlayStation 6 and Meta headset launches. Budget Android manufacturers face the greatest impact, forcing cost increases that may eliminate smaller brands while benefiting Apple and Samsung.
#ram-shortage #ai-datacenter-demand #smartphone-market-decline #memory-chip-pricing #budget-smartphone-impact
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