Key Takeaways
1. The ongoing DRAM crisis is driving up prices for RAM, SSDs, and hard drives, making devices more expensive.
2. The percentage of production costs for RAM and flash storage in smartphones is expected to rise from 10-15% to 30-40% in 2026.
3. Smartphone prices may increase as manufacturers face higher production costs, especially impacting budget-friendly models.
4. Global smartphone production is projected to decline by 10% to around 1.135 billion units in 2026, with a possible drop exceeding 15%.
5. Chinese smartphone makers will be most affected, while companies like Apple and Samsung may manage the crisis better due to their pricing strategies and in-house production capabilities.
The ongoing DRAM crisis is causing a rise in the prices of RAM, SSDs, and hard drives. This situation is also affecting the costs of DRAM and NAND chips for manufacturers of laptops and smartphones. As a result, many devices are becoming more expensive. A recent report from TrendForce highlights that the price for a standard smartphone setup featuring 8 GB of RAM and 256 GB of flash storage has surged by 200% since the first quarter of 2025.
Rising Production Costs
Last year, RAM and flash storage represented merely 10 to 15% of the production expenses for an average smartphone. However, this year, it’s projected that these components will account for 30 to 40% of total costs. Price hikes are anticipated throughout 2026, as the DRAM situation is likely to deteriorate due to increasing demand from AI companies. For many manufacturers, raising smartphone prices for consumers may become unavoidable. This is especially true for budget-friendly mid-range smartphones, which generally have lower profit margins compared to premium models.
Impact on Smartphone Production
According to TrendForce experts, global smartphone production is expected to fall by 10% to around 1.135 billion units in 2026. Depending on how prices for RAM and storage develop, the decline could exceed 15%. Smartphone makers in China are predicted to feel the most impact, while Apple, with the relatively higher price of the iPhone 17, has more flexibility to manage the increased production costs. In addition, Samsung, which produces its own RAM and storage, is forecasted to navigate the crisis more effectively.
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