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Memory Shortage Pushes Phone Prices Up and Cuts Shipments

Chipmakers shifted DRAM and NAND capacity into high‑bandwidth AI memory, pushing component costs higher and extending price pressure into 2027.

Overview

  • Global smartphone shipments fell about 7% year‑over‑year in Q2 2026, and FDM CCS Insight now forecasts roughly a 12% decline for full‑year 2026.
  • Rerouting DRAM and NAND capacity to high‑bandwidth memory for AI drove sharp memory price rises that made new phones about 13% more expensive in Q2 versus Q1.
  • The higher component costs are prompting OEMs to cut low‑margin models and push buyers toward mid‑ and premium devices while expanding financing offers.
  • The organized secondary market grew modestly as buyers sought cheaper options, but constrained U.S. trade‑ins and tight supply have lifted used‑phone prices.
  • In India shipments dropped around 11% in Q2 while market value rose as average selling price climbed about 14%, with the sub‑$100 segment collapsing and premium bands gaining share.