Budget phones have been impacted the most by the rapid increases in RAM pricing, but that’s expanding to more expensive devices. A new report shows that devices sold for under $400 are being hit hard enough to where they’re gradually being left behind.
Omdia published a new report that says memory (RAM) now accounts for up to 64% of the cost of making a budget smartphone. That’s for “ultra low” devices that sell for $99 or less, but devices in the $100-400 segment are not far behind, with memory accounting for up to 59% of the total material cost. It drops from there, but every segment has seen the cost of memory more or less double over the past few months (compared to Q3 2025).
Apparently, $400 is the current tipping point, with smartphone makers either increasing the cost on these devices or cutting them out of the lineup altogether. There will be a 22% drop year-over-year in smartphones under $400, Omdia says.
Memory costs have become a serious burden for mid-to-low-end smartphones, contributing to a year-on-year decline of over 22% in the market for smartphones priced below $400.
…However, higher prices are likely to lead to a significant decline in demand, as low-end consumers are highly price-sensitive. Based on the memory price trend for the coming quarters, low-end products are already becoming unprofitable and face a high risk of weakening demand as retail price continues to rise. As a result, smartphone vendors are proactively and gradually retreating from the low-end segment in this year.
