The recent surge in RAM prices is significantly impacting the budget smartphone market, with predictions that these affordable devices may gradually disappear. A new report from Omdia suggests that RAM now accounts for up to 64% of the total component cost in ultra-low-cost smartphones priced under $99.
Rising Costs Affecting Affordable Devices
For smartphones within the $100 to $400 range, RAM still represents a considerable portion of the expense, contributing around 59% to the overall component costs. This is a stark increase from Q3 2025 when it was only 32%. The report highlights that the $400 price point has become critical, as manufacturers face the decision to either increase prices or discontinue lower-end products.
Predictions for Market Changes
Omdia projects a 22% decline in sales for smartphones priced under $400 compared to last year. The report emphasizes that as memory prices continue to rise, low-end products are becoming less profitable, leading to a potential decrease in demand. Smartphone vendors are anticipated to gradually withdraw from the low-end market this year.
Impact on Specifications
Interestingly, while the lower-end segment faces challenges, there is positive news for higher-priced devices. Shipments for smartphones priced above $400 are expected to increase by 5.7% this year. However, to manage costs, manufacturers are likely to lower the specifications of budget devices. This may involve using lower-quality display panels, reducing the number of cameras, or opting for older chipsets.
Future Outlook for Smartphone Market
The ongoing crisis in RAM pricing is set to reshape the smartphone landscape, particularly affecting budget options. As vendors adjust their strategies in response to rising costs, consumers may see fewer choices in the affordable segment while higher-end devices continue to thrive. The adjustments in specifications also signal a shift in how manufacturers approach the production of lower-cost smartphones.
Source: https://inet.detik.com/consumer/d-8565535/efek-krisis-ram-hp-android-murah-menghilang-spek-makin-turun
