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Rising Memory Prices to Impact Smartphone and Notebook Markets in Q1 2026

Recent research from TrendForce indicates the memory pricing landscape is set for a significant shift in the first quarter of 2026. This increase in memory costs will put tremendous pressure on manufacturers of consumer electronics such as smartphones and notebooks, leading many brands to reconsider their pricing strategies and product specifications.

Implications of Rising Memory Costs

According to TrendForce's findings, the total bill of materials (BOM) costs for devices are increasingly dominated by memory components. This trend is expected to be especially pronounced for major players in the smartphone industry, including Apple. For instance, the BOM for the iPhone will see a marked increase in memory costs and may force Apple to adjust its pricing strategies for new releases while reevaluating discounts on older products.

Brands in the Android ecosystem that cater to mid-range and budget segments could face even harsher consequences. Rising memory prices mean these manufacturers may need to increase initial launch prices for their new devices and be forced to rethink pricing strategies for existing products to curb potential financial losses.

Adjustment in Product Strategies Across Markets

The anticipated increase in memory prices is not limited to smartphones. Notebook manufacturers are also adapting their approaches. For high-end ultrathin notebooks, which often have DRAM soldered to the motherboard, there is little room to cut costs without altering specifications—a challenging proposition given the stringent design requirements for these models. Consequently, such devices are at a high risk of encountering significant price pressures first.

Furthermore, while demand for consumer notebooks tends to respond dynamically to price changes and spec adjustments, the current stock levels and readily available inexpensive memory will help maintain short-term profit margins. However, industry experts draw attention to a looming medium to long-term need for price hikes or spec reductions as a direct response to increased memory costs. Notably, TrendForce anticipates heightened price volatility within the PC sector by the second quarter of 2026.

Cost-Cutting Through Downgraded Specifications

Smartphone and notebook makers are increasingly inclined to reduce product specifications or delay upgrades as a measure to save costs, especially concerning DRAM. This component makes up a significant share of overall memory expenses. In response to fluctuating costs, the market may observe a slowdown in upgrade cycles, particularly evident in high-end and mid-range models, where DRAM capacities may hover near the minimum levels to avoid expenses.

This will markedly affect the low-end smartphone market, where entry-level models might revert to offering just 4GB of RAM in 2026. In contrast, budget notebooks face constraints that prevent rapid DRAM reductions due to their dependency on specific processor pairings and operating system requirements.

The Path Forward

As tech brands reconcile these economic challenges with market expectations, they face a multi-faceted dilemma: how to balance profitability while meeting consumer demands for updated features. As memory prices climb and competition intensifies, the pathways manufacturers choose now will dictate their operational strategies and market positions heading into a pivotal year.

For insights and comprehensive data regarding these transformations, TrendForce continues to serve as a significant analytical resource in semiconductor research, offering valuable perspectives to both industry insiders and consumers alike.