A global DRAM shortage is spiking memory prices, forcing phone makers to cut specs. Smartphone shipment numbers are projected to drop by 2.6 percent next year as component costs jump. Bill of Materials expenses could rise up to twenty-five percent for budget models.
Apple and Samsung can absorb these cost increases better than their rivals. Chinese manufacturers face a tougher battle for profits. The sub two-hundred-dollar market will get hit hardest, making current entry-level phone pricing unsustainable.
Companies will likely downgrade hardware like cameras and screens to manage margins. Some may reintroduce microSD slots or older four-gigabyte RAM configurations. Laptop makers could also slash base memory to just eight gigabytes.
Industry outlooks on the shortage vary. One prediction expects DRAM prices to stabilize in six months, while another forecasts high costs lasting until late 2027.
Apple and Samsung can absorb these cost increases better than their rivals. Chinese manufacturers face a tougher battle for profits. The sub two-hundred-dollar market will get hit hardest, making current entry-level phone pricing unsustainable.
Companies will likely downgrade hardware like cameras and screens to manage margins. Some may reintroduce microSD slots or older four-gigabyte RAM configurations. Laptop makers could also slash base memory to just eight gigabytes.
Industry outlooks on the shortage vary. One prediction expects DRAM prices to stabilize in six months, while another forecasts high costs lasting until late 2027.
