Rising memory prices could make budget smartphones more expensive
The memory market crisis, driven by increased demand due to the artificial intelligence boom, could lead to a significant increase in smartphone prices. The problem will particularly affect budget models, where the cost of memory constitutes a substantial part of the total cost.
According to TrendForce analytical company, the deficit of DRAM chips and other older formats, installed in most budget phones, has become particularly acute due to the widespread implementation of AI systems. It is estimated that the stock of memory among smartphone manufacturers has now been reduced from 8-10 weeks to almost half, leading to forced purchases of components at significantly higher prices.
DRAM prices have increased more than fivefold throughout the year, and Flash memory prices have tripled. The cost of 4-gigabyte DDR4x chips has risen from $7 to over $30, and 64-gigabyte eMMC memory has gone up from $3.2 to more than $8. This increase will primarily reflect on the final cost of budget smartphones entering the market in the first half of 2026.
The problem is also related to the trend of rising DRAM contract prices in the fourth quarter by over 75% year-on-year. Memory typically constitutes 10-15% of the smartphone’s cost, so prices for gadgets are expected to rise by 8-10% in 2025.
Earlier, companies such as Dell and Lenovo have already warned about possible price increases due to the memory shortage. This indicates that the impact of the shortage and rising chip prices is being felt on the global market.
| Type of Memory | Price at the Beginning of the Year | Current Price |
| DDR4x 4GB | $7 | $30 |
| eMMC 64GB | $3.2 | $8 |
