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Toms Hardware
Budget smartphone market collapses under the weight of memory shortages Published 8 July 26
The budget smartphone market is collapsing under the increasing burden of memory shortages, which significantly affect production costs. With the price of memory components rising, these devices now see memory costs comprise up to 64% of their total price, leading to concerns about future affordability and accessibility for consumers. Analysts predict a 22% decline in sales as manufacturers struggle to stay profitable amid this crisis.
MonitorConfidence: HighShort term horizonSupply chain risk: High
Published 8 Jul 2026, 15:46 UTC1 min read
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Summary
TL;DR
- Budget smartphone market faces collapse due to memory shortages
- Sales projected to decline by 22%
- Memory now constitutes up to 64% of total costs for budget devices
- Manufacturers may raise prices or reduce features to cope
- Consumer affordability and accessibility at risk
Interesting facts
- Rising memory costs are reshaping the pricing strategy for budget smartphones
- The situation may lead to a significant shift in the budget smartphone market dynamics
- This crisis could result in fewer options for consumers in the budget segment