Global Smartphone Prices Rise as Memory Costs Soar

A recent analysis by market‑research firm Omdia shows that rising costs for RAM and flash storage are driving up the price of entry‑level smartphones worldwide. In the first quarter of 2026, memory accounted for almost 60 % of the total material cost of devices under $400, and over 64 % for phones priced below $99. Manufacturers such as Xiaomi, Transsion, OPPO, Vivo and Honor will need to raise prices on their budget models just to maintain thin margins, risking a sharp drop in demand. Omdia forecasts a 12 % decline in total smartphone shipments for 2026, with the sub‑$400 segment shrinking by more than 22 %, while premium phones above $400 are expected to grow by 5.7 %. The squeeze on low‑cost devices could push many makers out of the budget market altogether.