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HomeTechnology › The memory chip crisis threatens the future of budget phones, with costs doubling
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The memory chip crisis threatens the future of budget phones, with costs doubling

A report revealed that the cost of RAM and storage chips rose from about a third of the cost of manufacturing budget phones to between 59% and 64% in less than a year, threatening a major contraction in this sector compared to leading phones that are able to absorb the increase.

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10 July 2026 · 12:11 · 1 min read · 112 views Follow
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1A report revealed that the cost of RAM and storage chips rose from about a third of the cost of manufacturing budget phones to between 59% and 64% in less than a year, threatening a major contraction in this sector compared to leading phones that are able to absorb the increase.
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The memory chip crisis threatens the future of budget phones, with costs doubling
The memory chip crisis threatens the future of budget phones, with costs doubling · نيو ترك بوست

The sharp rise in the costs of RAM chips and storage units threatens the future of budget and mid-range smartphones, which already operate on very thin profit margins.

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According to the report, memory and storage chips in the third quarter of 2025 (July-September) constituted only between 31% and 33% of the total cost of manufacturing a phone priced at $400 or less. Today, in 2026, the share of these same components has jumped to between 59% and 64% of the total cost, nearly doubling in less than a year.

While manufacturers of leading phones, such as the iPhone Pro or Galaxy Ultra with prices exceeding $1,200, can absorb this increase or pass it on as slight price increases due to their small percentage of the total cost, manufacturers in the category of phones priced at $400 or less, such as Xiaomi Redmi Realme and Infinix are facing a real disaster due to their operation with profit margins that do not exceed $5 to $10 per device.

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This story was produced with machine-translation assistance, then went through human editorial review for accuracy and sourcing.

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