According to market research company Counterpoint Research, the soaring memory price is strongly impacting smartphone manufacturers, especially low-cost segment manufacturers.
Statistics show that product manufacturing costs (BOM) have increased by 30% since the first quarter of 2025 and are likely to increase by another 15% in the next two quarters. In Europe, the biggest impact will be seen in the under 250 USD segment - where competition is fierce, profit margins are low, and consumers are much more sensitive to prices.
To minimize the impact of these price increases, and to reduce the need to shift increased costs to consumers, original equipment manufacturers (OEMs) are facing a difficult choice – narrowing down their product portfolios, lowering the specifications of new equipment, choosing more carefully target markets, or simply waiting for the crisis to pass.
According to analysis by expert Jan Stryjak, high-end OEMs, such as Apple and Google, or manufacturers with diverse product portfolios, such as Samsung, are better protected from the impact of memory chip price increases.
However, these strategies may be unrealistic or not really effective for low-end OEMs, such as Realme, HMD and Transsion, or smaller manufacturers such as Sony and TCL. "These businesses need to reposition their positions to maintain an important role after the crisis ends, otherwise they may have to withdraw from the European market," shared an expert from Counterpoint Research.
According to forecasts by Counterpoint Research, global smartphone shipments will decrease by 6% compared to the previous year in 2026, and significant recovery is unlikely to occur before the first half of 2027. Until then, the industry may go through a period of adjustment, balancing costs, performance and innovation, before a more stable growth cycle resumes.
