DRAM prices skyrocketing could see smartphone build costs also rocketing up 25% next year

TL;DR: Rising DRAM prices are driving a 10-25% increase in smartphone bill of materials for 2026, impacting low-end models most severely. Chinese OEMs face the greatest challenges, while Apple and Samsung are better positioned to manage costs. This shift may reduce low-end smartphone availability and reshape market dynamics.

It’s like every day is a “here we go again” day… and today we’re reporting on the fact that out-of-control DRAM prices are forcing smartphone makers to re-think their 2026 plans, as the bill of materials (BOM) could increase by 25% according to the latest reports.

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It was barely 24 hours ago that I reported that the return of 4GB of RAM in smartphones will be upon us in 2026, as well as the return of microSD expansion in upcoming smartphones, but with the BoM (Bill of Materials) rising 25%, then it just underscores that fact.

In a new report from Counterpoint Research, low-end, mid-range, and high-end smartphone BoM costs will be increasing 25%, 15% and 10%, respectively. It looks like Chinese OEMs will be hurt the most, with Apple and Samsung faring a little better.

Research Director MS Hwang said: “What we are seeing now is the low end of the market (below $200) being impacted most severely, with BoM (bill of materials) costs increasing by 20%-30% since the beginning of the year. The market’s mid- and high-end segments have seen 10%-15% price increases“.

Senior Analyst Yang Wang added: “In the lower price bands, steep price increases on smartphones are not sustainable. And if cost pass-through isn’t possible, OEMs will start pruning parts of their portfolios – that’s actually what we are starting to see with significantly reduced volumes of low-end SKUs. Apple and Samsung are best positioned to weather the next few quarters. But it will be tough for others that don’t have as much wiggle room to manage market share versus profit margins. We will see this play out especially with the Chinese OEMs as the year progresses“.