The rising cost of RAM is severely impacting the market for budget Android smartphones, with predictions that this trend may extend to higher-end devices. Recent reports reveal that smartphones priced below $400 are beginning to feel the effects, and their availability might diminish over time.
RAM Costs Drive Changes in Smartphone Pricing
According to a new report by Omdia, RAM now accounts for up to 64% of the component costs for ultra-low-cost smartphones priced at $99 or less. In the $100 to $400 range, memory costs contribute approximately 59% to the overall component expenses, a significant increase from just 32% in the third quarter of 2025.
Critical Price Point for Manufacturers
The $400 mark has become a crucial threshold, prompting smartphone manufacturers to either raise prices for devices in this segment or remove them from their product lines altogether. Omdia forecasts a 22% decline in sales of smartphones priced under $400 compared to the previous year. This shift indicates that the low-end market is becoming less profitable, with demand likely to decrease as retail prices continue to rise.
Proactive Moves by Smartphone Vendors
Omdia's report suggests that vendors are already starting to withdraw from the low-end segment, taking proactive measures in response to the rising costs. As manufacturers adapt to these changes, the landscape of smartphone offerings is expected to evolve significantly.
Shifts in Specifications to Manage Costs
In light of the rising RAM costs, the report also highlights that vendors will likely reduce device specifications to cut allocated costs for RAM. This may involve lowering display quality, using fewer cameras, opting for smaller sensors, and reverting to older chipset generations. Such adjustments aim to maintain profitability while navigating the challenging market environment.
As the smartphone industry grapples with these economic pressures, consumers may notice shifts in the types of devices available, particularly in the budget-friendly range. The trend toward cost-cutting measures could reshape the market, leading to a new standard for what constitutes an affordable smartphone.
Source: https://inet.detik.com/consumer/d-8565535/efek-krisis-ram-hp-android-murah-menghilang-spek-makin-turun
