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Memory shortage decimates budget smartphone market, driving up costs

By PulseAugur Editorial · [2 sources] ·

The budget smartphone market is experiencing a significant downturn, with sales projected to fall by 22% due to a global memory shortage. The cost of DRAM and NAND flash memory has surged, now accounting for up to 64% of the total manufacturing cost for phones under $99 and nearly 60% for devices under $400. This economic pressure is forcing manufacturers to either increase prices, making devices unaffordable for their target demographic, or compromise on other components in mid-range phones. AI

IMPACT The AI industry's demand for high-bandwidth memory is directly impacting the availability and cost of standard memory, leading to a collapse in the budget smartphone market.

RANK_REASON Significant market contraction due to supply chain constraints impacting a major consumer electronics sector.

Read on Tom's Hardware →

AI-generated summary · Google Gemini · from 2 sources. How we write summaries →

Memory shortage decimates budget smartphone market, driving up costs

COVERAGE [2]

  1. Tom's Hardware TIER_1 English(EN) · Zak Killian ·

    Budget smartphone market collapses under the weight of memory shortages, sales expected to drop 22% — memory alone now comprises up to 64% of the total cost of lower-tier smartphones

    The global AI memory squeeze is pricing cheap phones out of existence and forcing mid-range devices to compromise on hardware.

  2. Mastodon — mastodon.social TIER_1 English(EN) · [email protected] ·

    Budget smartphone market collapses under the weight of memory shortages, sales expected to drop 22% — memory alone now comprises up to 64% of the total cost of

    Budget smartphone market collapses under the weight of memory shortages, sales expected to drop 22% — memory alone now comprises up to 64% of the total cost of lower-tier smartphones The global AI memory squeeze is pricing cheap phones out of existence and forcing mid-range devic…

    LINKS tomshardware.com/…/budget-smartphone-mark…

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