According to the latest research conducted by Omdia, global smartphone shipments priced under $400 are anticipated to experience a significant drop of over 22% year-on-year in 2026. This decline is attributed to the swift surge in the prices of DRAM and NAND components. In the first quarter of 2026, the memory costs for such smartphones constituted nearly 60% of the total bill of materials. For models priced below $99, this proportion exceeded 64%, nearly doubling from the third quarter of 2025. Manufacturers have endeavored to mitigate this pressure by reducing costs on other components; however, the cost structure of low-end smartphones is inherently constrained, offering limited scope for adjustments.
