Memory prices may cut smartphone production in 2026

Memory prices are expected to severely impact global smartphone production in 2026, according to TrendForce. The analysis points to a 10 percent decline compared to 2025, equating to approximately 1.135 billion units. Contract prices for a standard 8 GB RAM and 256 GB storage configuration have nearly tripled compared to the same period in 2025. Memory's share of a smartphone's production cost has risen from a historical 10–15 percent to 30–40 percent, which is expected to force many manufacturers to raise final prices and adjust product portfolios. Samsung, also a major memory supplier, is expected to be less affected due to vertical integration. Apple can partially absorb higher costs through a larger share of premium products and customers with higher price acceptance. Price-sensitive brands like Xiaomi and Transsion are more vulnerable and risk larger production cuts. Vivo, OPPO, Xiaomi, and Honor also face increased competition from Huawei, which is expected to be the least affected and may grow against the market trend. TrendForce emphasizes that structural demand is also changing. Smartphones already offer functionality covering most consumer needs, which lengthens upgrade cycles and reduces incentives to switch models