Budget smartphones will suffer the most from rising component prices. According to analysis by Counterpoint Research, rising memory prices could increase the cost of entry-level devices by 25%.
In Q1 2026, prices for DRAM memory increased by 50%, and NAND Flash by 90%. This will affect all segments, but smartphones under $200 will be hit the hardest. According to analysts, the configuration with 6 GB of RAM and 128 GB of storage will increase in price for manufacturers by 25%, with memory accounting for 43% of the total cost of components.
Mid-budget smartphones ($400-600) with 8 GB of LPDDR5X RAM and 256 GB of UFS 4.0 storage will increase in price by 14% and 11%, respectively, in Q1 alone, and in Q2 – by up to 20% and 16%. Flagships starting at $800 with 16GB of RAM and 512GB of UFS 4.1 storage could see a $100-150 price increase by Q2, with DRAM and NAND accounting for 23% and 18% of the cost, respectively.
Analysts predict that manufacturers will change strategies, reducing supply of entry-level models and saving on other components to offset memory costs.
“Given the large jump in memory prices, the usual cost-cutting methods can only provide limited returns. Price increases at retail in 2026 are inevitable. We expect retail prices for lower-end devices to increase by about $30, while the price “The pressure on some premium flagships will be transferred to consumers, leading to a price increase of $150-200,” said senior analyst Shengao Bai.
