Smartphone Brands Cut Features as Memory Costs Jump 8-12% in 2026
Updated
Updated · BusinessLine · Jun 3
Smartphone Brands Cut Features as Memory Costs Jump 8-12% in 2026
2 articles · Updated · BusinessLine · Jun 3
Summary
8-12% higher memory costs in Q1 2026 pushed smartphone brands to hold prices by trimming adjacent features in new models, especially in entry and base devices.
Sub-₹20,000 phones have been hit hardest because memory makes up a bigger share of costs, prompting cuts to camera resolution, display technology, weight, audio quality, in-box accessories and water resistance.
25-30% of annual smartphone sales could be affected if prices keep rising, while 54% of current demand may fail to convert this festive season; only 22% of surveyed buyers would accept weaker specs, versus 48% who would delay purchases.
Global NAND flash and DRAM prices have been rising since November 2025, and IDC expects the cost squeeze to worsen in Q2, with supply constraints, currency pressure and higher prices potentially lasting into the second half of 2027.
High-end models are not immune: Counterpoint estimated the iPhone 17e bill of materials rose 15.6% from the 16e, largely because of memory, reinforcing that brands across tiers are trading features to protect pricing.