SIGNALInfrastructure Software·Jul 7, 2026, 12:42 PMSignal75Short term

DRAM prices are killing the cheap smartphone

Source: The Register

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DRAM prices are killing the cheap smartphone

Now eats 60% of a sub-$400 handset's bill of materials and it's only getting worse

Why this matters
Why now

DRAM prices have been steadily increasing due to supply-demand imbalances and manufacturing complexities, now reaching a critical threshold for consumer electronics.

Why it’s important

This directly impacts the affordability and accessibility of fundamental computing devices, potentially widening the digital divide and shifting market strategies of electronics manufacturers.

What changes

Cheap smartphones are becoming economically unviable, forcing manufacturers to either increase prices, reduce other component quality, or pull out of certain market segments.

Winners
  • · DRAM manufacturers
  • · High-end smartphone market
  • · Refurbished phone market
Losers
  • · Sub-$400 smartphone manufacturers
  • · Emerging market consumers
  • · Retailers of budget electronics
Second-order effects
Direct

Rising smartphone costs will reduce adoption rates in cost-sensitive markets.

Second

Manufacturers may explore alternative memory technologies or vertical integration to control component costs.

Third

Increased focus on device longevity and repairability as new device acquisition becomes more expensive.

Editorial confidence: 90 / 100 · Structural impact: 60 / 100
Original report

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Read at The Register
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