According to Counterpoint Research, entry-level smartphones will be impacted the most by soaring memory prices, with the bill of materials (BoM) tipped to rise by 25% sequentially in the current quarter.
The research outfit forecasts memory to account for 43% of the BoM of handsets with a wholesale price of less than $200.
Senior analyst Bai Shenghao stated the memory price hike is “delivering a structural impact to smartphone BoM” and predicted OEMs would “struggle to balance component costs, gross margins and shipment targets”.
“Those who rely heavily on entry-level models to drive market share will face a significant risk of short-term losses.”
“Considering the massive memory price surge, standard cost-cutting measures may only result in limited returns. A rise in retail prices seems unavoidable in 2026”.
Counterpoint Research expects low-end retail prices to increase by around $30, while the cost pressures on some premium flagships are likely to be passed on to consumers, resulting in price increases of $150 to $200.
DRAM prices are forecast to increase by more than 50% sequentially in this quarter and NAND flash by more than 90%.
For mid-tier devices with wholesale prices between $400 and $600, the proportion of DRAM to overall BoM is tipped to rise to 14% and NAND 11% in the current quarter, and 16% and 20%, respectively, in the next.
It forecast BoM in the premium tier, devices with wholesale prices of more than $800, to grow by $100 to $150 by Q2, with DRAM accounting for 23% and NAND 18%.
Source: Mobile World Live
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