Sub-$400 Smartphone Shipments to Drop 22% in 2026 as Memory Costs Near 60% of BOM
Updated
Updated · Informa PLC · Jul 9
Sub-$400 Smartphone Shipments to Drop 22% in 2026 as Memory Costs Near 60% of BOM
3 articles · Updated · Informa PLC · Jul 9
Summary
Omdia forecasts global smartphone shipments priced below $400 will fall more than 22% in 2026, driving a 12% decline in the overall handset market.
In 1Q26, memory already made up nearly 60% of bill-of-materials costs for sub-$400 phones and more than 64% for sub-$99 models after DRAM and NAND prices surged.
Vendors including Transsion, OPPO, vivo, Honor and Xiaomi are raising retail prices and trimming other components such as displays, cameras and RF modules, but Omdia says low-end devices are still becoming unprofitable.
That pressure is pushing brands to retreat from entry-level models while shipments above $400 are expected to grow 5.7%, supported by stronger margins and less price-sensitive buyers.