In the evolving smartphone industry, a significant surge in production costs is anticipated, with the Bill of Materials (BoM) for these devices projected to increase by 25 percent by 2026. This rise is largely attributed to the ongoing DRAM crisis, which has prompted some manufacturers to reconsider the viability of 4GB RAM configurations for entry-level smartphones, as the prices of components have soared to unprecedented levels. Alongside memory, the cost of NAND flash storage has skyrocketed, with mobile LPDDR RAM prices surpassing a staggering 70 percent increase and storage costs doubling.
DRAM Costs Surging: Accounting for Over 20% of Manufacturing Expenses
No smartphone manufacturer is immune to the impacts of the DRAM shortage; according to research from Omdia, Samsung’s co-CEO has affirmed that all companies are affected. Data shared by renowned tipster Ice Universe indicates that the necessary price premiums for DRAM and NAND flash are 70 percent and 100 percent, respectively. These shocking figures highlight a critical challenge that phone makers will face as they strive to maintain competitiveness.
TrendForce’s examination reveals that memory previously represented only 10-15 percent of the total manufacturing cost for smartphones. However, this number has now escalated to over 20 percent. The situation is exacerbated by the expected retail price tag of premium chipsets, such as the Snapdragon 8 Elite Gen 6 Pro, which should exceed $300, while its predecessor, the Snapdragon 8 Elite Gen 5, is projected at around $280. As manufacturers grapple with these increased expenses, they are likely to confront tough decisions regarding device specifications or, conversely, opt to transfer these costs to consumers—a move that could lead to diminished sales.
According to data from market research firm Omdia, prices of mobile DRAM (LPDDR) products have risen by more than 70% since early last year, while smartphone NAND flash prices have surged by around 100%.TrendForce analysis notes that “memory costs now account for more than 20%…”
— Ice Universe (@UniverseIce) January 12, 2026
This financial landscape presents a challenging road ahead. However, some companies have managed to navigate the DRAM shortages more successfully. For instance, NVIDIA’s strategy of prepaying for inventory has shielded it from the crisis, although this may have contributed to the shortage as a whole. As we look forward, the predictions are grim; the semiconductor shortage is expected to linger until the fourth quarter of 2027.
For further insights, refer to the findings shared by Ice Universe and check additional context in the source article.
Related Articles:
iPhone 18 Pro Features Variable Aperture Camera, Pressuring Samsung to Eliminate Weak Sensor in Galaxy S27 Ultra
16:45
Samsung Unveils Next-Gen Exynos 2700 Chipset Promising Enhanced AI Performance to Boost Market Share
9:32
Apple A20 Chip Expected To Omit New WMCM Packaging Technology For Diverse CPU/GPU Core Combinations
5:56
Leave a Reply