Memory shortage will impact the smartphone market in 2026
In 2026, due to the crisis in the DRAM market, smartphone production may decrease by up to 15%, and device prices are expected to rise, especially for budget models. The increasing cost of memory has already driven up smartphone manufacturing expenses, and this trend is likely to continue.
Crius
The smartphone market is expected to face significant challenges in 2026 due to the ongoing DRAM market crisis. According to the latest TrendForce report, smartphone production could drop by 15% after the cost of RAM has tripled compared to last year.
The price increases are affecting not only RAM, SSDs, and hard drives, but also DRAM and NAND components used in laptops and smartphones. This leads to higher prices for end-user devices. TrendForce notes that the cost of a standard smartphone configuration with 8 GB of RAM and 256 GB of flash storage has already risen by 200% compared to the first quarter of 2025.
Previously, RAM and flash memory accounted for only 10–15% of the total cost of an average smartphone, but now their share could reach 30–40% of the device’s overall price. Throughout 2026, further price increases are expected as the DRAM crisis worsens due to growing demand from major companies in the artificial intelligence sector. For many manufacturers, raising smartphone prices for consumers will become unavoidable, especially for budget and mid-range models with lower profit margins compared to flagship devices.
TrendForce analysts predict that global smartphone production will decrease by 10%—down to 1.135 billion units in 2026. Depending on how RAM and flash memory prices evolve, the decline could exceed 15%. Chinese smartphone makers will be hit especially hard, as Apple, thanks to the high price of the iPhone 17, has more flexibility to absorb rising production costs. Additionally, Samsung manufactures its own RAM and flash memory, which helps the company better manage the crisis.