Mobile DRAM prices impact smartphone production

According to TrendForce, mobile DRAM prices continue to surge in the second quarter of 2026, posing additional challenges for smartphone manufacturers who are already adjusting production plans due to the ongoing memory shortage. The latest market research indicates that the average selling prices for LPDDR4X solutions are expected to increase by 70-75% quarter-on-quarter, while LPDDR5X prices are projected to rise even more significantly, with ASPs up by 78-83% quarter-on-quarter. These price hikes, following several consecutive quarters of sharp increases, are now directly impacting the product strategies of handset manufacturers.

One notable observation made by TrendForce is the differing pricing strategies adopted by key suppliers in the mobile DRAM market. Samsung Electronics is reportedly pursuing a more aggressive pricing approach, while SK hynix is leaning towards a gradual increase in pricing. Final pricing decisions are anticipated to be finalized by late May, shaping the competitive landscape in the industry.

The immediate concern arising from the escalating DRAM prices is not just the financial burden on phone brands. TrendForce highlights the potential challenges faced by manufacturers in meeting the procurement volumes agreed upon in long-term contracts signed with suppliers at the end of the previous year. With the recent surge in prices, the viability of these agreements has come into question, impacting the supply chain dynamics in the smartphone sector.

As a result of the sustained high prices of DRAM, there is a noticeable shift in the memory configurations of smartphones. TrendForce predicts that 12 GB will become the predominant high-end configuration, while the adoption of 16 GB models is expected to decline. Mid-range smartphones are increasingly featuring 8 GB as the standard specification, while entry-level devices are commonly equipped with 4 GB of RAM.

Despite these changes, the average smartphone DRAM capacity is forecasted to increase to 8.5 GB in 2026, marking a 10% year-on-year growth. This growth is attributed to the phasing out of lower-capacity models and a reduction in the production of very basic smartphones with minimal memory specifications. The evolving memory landscape reflects the ongoing adjustments in the smartphone market to accommodate the shifting cost dynamics.

The surge in mobile DRAM prices is emblematic of a broader transformation in the handset industry. With global smartphone shipments projected to decline by 12.9% in 2026, manufacturers are facing challenges in maintaining profitability, particularly in the low-end Android segment. Rising memory costs are expected to drive a shift towards premium devices, prompting manufacturers to reevaluate their product strategies. To mitigate the impact of expensive DRAM, vendors are exploring collaborations with app developers and leveraging cloud resources to optimize memory usage and enhance system performance.