The report warned that sustained increases in memory costs are forcing smartphone and notebook brands to adjust their strategies, including raising product prices and scaling back specifications.

Shipment forecasts are also being revised downward, with market share likely to become more concentrated among leading brands.

Memory components now account for a growing share of the bill of materials (BOM) in consumer electronics, including smartphones and personal computers. Even Apple, known for its strong profitability, expects memory costs for iPhones to rise substantially in early 2026.

All of which could prompt the company, and others, to reconsider pricing strategies for upcoming models and reduce or eliminate discounts on older devices.

For Android manufacturers, particularly those targeting mid- and low-end segments where memory is a key selling point, higher costs will likely lead to increased launch prices for new models next year. Existing models may also see price adjustments or shortened lifecycles to mitigate losses.

TrendForce found that notebook brands are preparing to revise product portfolios and procurement strategies. High-end ultrathin laptops, which typically feature mobile DRAM soldered directly onto the motherboard, face the greatest challenge as design constraints limit opportunities to cut costs by reducing specifications.

While current inventory levels and lower-cost memory components are helping maintain short-term stability, analysts expect more significant price fluctuations in the PC market by the second quarter of 2026. Longer-term measures, such as lowering specifications or raising prices, are anticipated.

Manufacturers are increasingly resorting to cost-saving measures such as delaying upgrades or reducing specifications, particularly for DRAM - the largest contributor to memory expenses. In high-end and mid-range devices, DRAM capacities are expected to remain close to minimum standards, slowing upgrade cycles. Low-end smartphones are likely to revert to base models with 4GB of memory in 2026. Budget notebooks, however, have less flexibility due to processor and operating system requirements.

In conclusion, TrendForce said that rising memory costs will continue to reshape pricing strategies and product planning across the consumer electronics industry well into next year.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved