Overview
- In early July ADATA said contract DRAM prices will rise 20%–30% in Q3 2026 and NAND flash prices will rise 35%–40%, and the company reported June revenue up 13.2% month‑on‑month and 212% year‑on‑year driven mainly by higher selling prices.
- Omdia's July research shows memory costs have ballooned for low‑priced phones, with storage rising from 33% to 64% of BOM in the sub‑$99 segment and storage nearing 60% of BOM for sub‑$400 phones.
- Omdia projects global shipments of phones priced below $400 will decline more than 22% year‑over‑year in 2026 because rising DRAM and NAND contract prices are squeezing low‑end margins and retail affordability.
- Industry supply is tightening because wafer capacity is shifting to AI accelerators at major chipmakers, a change that shortens consumer memory allocations, lengthens lead times, and could extend tightness into 2028 if expansions lag.
- Smartphone makers are reacting by shifting portfolios toward mid and high‑end models, seeking long‑term memory contracts, reusing older SoCs and cutting costs on displays or sensors, which will raise prices and reduce choice for budget buyers.