Rising DRAM prices fueled by AI demand squeeze budget smartphones under $400, Omdia report says

An Omdia report warns that smartphones priced below $400 could decline by more than 22% in 2026 as rising memory costs, fueled in part by AI demands, reshape the budget smartphone market.

• Budget smartphone market collapses under the weight of memory shortages, sales expected to drop 22% — memory alone now comprises up to 64% of the total cost of lower-tier smartphones
• Budget smartphones are getting squeezed, and AI is one reason why
• Thanks, AI companies: Sub-$400 phones could see a huge decline due to RAM crisis
• DRAM prices are killing the cheap smartphone