Rising RAM Prices Threaten Budget Smartphones: Forecast Until 2026

Analytical firm Omdia has released a forecast predicting significant challenges for the budget smartphone segment priced under $400 in 2026. The primary issue is the sharp rise in RAM costs, which will account for 59% of total component expenses in this price range by Q1 2026. For context, RAM’s share was just 32% in Q3 2025.

Experts link the crisis to surging demand for high-performance memory from AI development companies. AI projects require substantial volumes of High-Bandwidth Memory (HBM) for data centers, leading to shortages and higher RAM costs for other market segments. Budget devices, where manufacturers operate with minimal profit margins, are particularly vulnerable.

According to Omdia, the global smartphone market will shrink by 12% in 2026, with a 22% decline in the sub-$400 segment. Meanwhile, shipments of devices priced above $500 are expected to grow by 5.7%. Manufacturers may revise their strategies to focus on premium models to offset losses from the budget segment.

The situation is exacerbated by Samsung’s decision to discontinue production of outdated RAM types, further limiting supply for mid-range and budget devices. Experts advise consumers planning to buy affordable smartphones to consider previous-year models to avoid inflated prices.