NewsBite analysis · Business, Gaming, Hardware
9to5google
Android phones will reportedly see more downgrades, fewer cheap devices as RAMageddon rages on
A recent report indicates that the increasing costs of RAM have led to a significant impact on Android smartphones, particularly in the budget segment. As RAM now constitutes up to 64% of the cost for ultra-low-end devices and 59% for those priced between $100 and $400, manufacturers are reconsidering their strategies. The report predicts a 22% drop in sales for smartphones under $400 due to these rising costs, indicating a shift towards higher-priced models. Consequently, brands may begin implementing downgrades in camera technology and display quality to offset the increased RAM expenses.
MonitorConfidence: HighShort term horizon
Published 7 Jul 2026, 18:25 UTC2 min read
Visit original article ↗Lead image — 9to5google
Summary
TL;DR
- RAM prices have doubled recently, affecting smartphone production costs.
- Budget smartphones priced under $400 are facing a 22% decline in demand.
- Manufacturers are downgrading features to manage costs, impacting device quality.
- Mid-to-low-end devices are at risk of becoming unprofitable.
- Shift towards more expensive models is expected, with a 5.7% rise in shipments above $400.
Interesting facts
- RAM now accounts for 64% of the production cost of ultra-low-end smartphones.
- Manufacturers like Motorola are maintaining older chipsets due to cost pressures.
- High price sensitivity among low-end consumers may drive further demand declines.