DRAM supply is increasingly being directed towards AI servers, and that shift is affecting smartphone makers. DRAM, a widely used memory component, is becoming more expensive as demand changes. Analysts say this rise in memory costs could have a direct impact on the lower end of the smartphone market. Entry-level phones, which are the cheapest models, may become less viable as a result. According to the analysis, they could even disappear by 2027. The trend highlights how demand for AI infrastructure can affect other parts of the technology market, including everyday consumer devices.
businessAdvanced1 min read7/6/2026
Rising memory costs could push cheap phones out by 2027
As DRAM supply moves towards AI servers, smartphone makers are coming under pressure. Analysts warn that higher memory costs may force entry-level phones out of the market.
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