The smartphone market is about to get a little pricier. A recent report highlights a pressing issue that could impact your next phone purchase. It’s all about the cost of memory, specifically RAM and storage, which are essential components of any smartphone. The report reveals that smartphone manufacturers like Xiaomi, OPPO, and Vivo are facing a dilemma due to rising memory prices. These companies are struggling to keep up with the increasing demand for memory components, which are in high demand from AI data centers. As a result, they’re having to make tough choices: either lower the specifications of their new devices or increase prices for consumers.
The primary culprit behind this memory price hike is the growing demand from AI data centers. These centers require servers with RAM, and the manufacturers of RAM chips have limited production capacity. When demand exceeds supply, prices rise, and this is exactly what’s happening. Interestingly, server makers are willing to pay more for these components, with distributors offering prices that can be 30% or more higher than what smartphone manufacturers are quoted. This disparity in pricing is a significant factor in the rising costs.
Furthermore, the report mentions that memory manufacturers like Micron, Samsung, and Kioxia are reducing their NAND flash memory production, which is expected to drive storage prices even higher. An anonymous source within the report predicts that memory prices will continue to rise in the first half of 2026. This trend isn’t limited to Chinese smartphone makers; it’s a global issue. Companies like Vivo, Samsung, and Apple are all part of the same supply chain, and the factors driving up costs for one will likely affect the others.
Given that RAM and storage are significant components of a smartphone’s cost, it’s only a matter of time before manufacturers pass these increased costs onto consumers. With the demand for AI infrastructure showing no signs of slowing down, it seems that phones and other tech might soon become even more expensive. Stay tuned as we keep an eye on this developing situation and its potential impact on your next tech purchase.