A shift in DRAM supply toward artificial intelligence servers is creating new pressure on smartphone makers. As more memory is directed to AI infrastructure, costs rise, and that increase can make entry-level phones more difficult to produce. The analysis suggests that low-cost smartphones could disappear, with 2027 identified as a possible turning point. For manufacturers, the issue is not only supply but also the economics of selling very cheap devices when memory becomes more expensive. If these trends continue, the entry-level segment may face a serious decline.
businessAdvanced1 min read7/6/2026
Pressure on Memory Supply Could Push Cheap Phones Out of the Market
Growing demand for DRAM in artificial intelligence servers is raising memory costs and putting pressure on smartphone makers, especially those that sell entry-level devices.
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