Smartphone Brands Cut 2026 Output as Mobile DRAM Prices Jump Up to 83%
Updated
Updated · DATAQUEST · May 26
Smartphone Brands Cut 2026 Output as Mobile DRAM Prices Jump Up to 83%
1 articles · Updated · DATAQUEST · May 26
Summary
TrendForce says smartphone brands are preparing to reduce 2026 production and may miss DRAM bit-purchase commitments after 2Q26 mobile DRAM contract prices surged again.
LPDDR4X average selling prices are projected to rise 70-75% quarter on quarter, while LPDDR5X prices jump 78-83%, with Samsung taking a sharper one-step pricing approach than SK hynix.
That cost pressure is reshaping handset memory tiers: 12GB is becoming standard in premium phones, 16GB is losing ground, mid-range models are shifting back to 8GB, and entry devices are clustering around 4GB.
Average smartphone DRAM capacity is still forecast to reach 8.5GB in 2026, up 10% annually, as 2GB and 3GB models fade and vendors trim low-spec production.
The sustained price spike is pushing brands to curb memory use through software optimization and greater reliance on cloud-based services as demand growth slows.
As memory makers prioritize AI, which smartphone giants will adapt and which will be left behind?
Could this memory crisis force smartphones to abandon powerful hardware for cloud-based computing?
Is the AI boom secretly downgrading your next smartphone while also raising its price?
Unprecedented 80% DRAM Price Hike in 2026: AI Boom and Tariffs Disrupt Global Smartphone Industry
Overview
In Q2 2026, the technology sector faces a crisis as DRAM prices surge dramatically, driven by memory manufacturers shifting wafer capacity to high-bandwidth memory (HBM) for AI accelerators like those from Nvidia. This re-prioritization has caused a severe shortage of conventional DRAM, especially impacting the smartphone industry. As a result, prices for mobile DRAM types such as LPDDR4X and LPDDR5X have soared by up to 83%, forcing smartphone makers to cut production and rethink their strategies. The shortage and price hikes are reshaping the market, making devices more expensive and reducing options for consumers.