Rising memory and storage costs have pushed smartphone and consumer electronics prices higher in recent months. However, a new report suggests that relief could arrive next year as the supply of memory chips is expected to improve, although the overall shortage may continue for a longer period.
According to tipster Yogesh Brar, citing industry sources, Chinese chipmakers ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC) are currently stockpiling DRAM chips. The report claims both companies plan to release their accumulated inventory into the market in 2027.
If the additional supply enters the market as expected, DRAM and storage chip prices could decline significantly next year. Despite this, the shortage of DRAM and NAND chips is expected to continue until Q1 2028, as manufacturers are still prioritising chip production for the rapidly growing AI industry and its data centre requirements.
It remains uncertain whether smartphone brands will pass on any reduction in component costs to consumers if memory prices fall. In recent months, the prices of budget, mid-range, and flagship smartphones have increased sharply due to rising component costs.
The ongoing memory shortage has also affected product launches. Nothing has already confirmed that it will not introduce a flagship smartphone this year. Meanwhile, its sub-brand CMF has paused all smartphone launches for the year, citing higher RAM prices caused by the supply shortage.
Separately, a recent report from market research firm IDC projects that global smartphone shipments will decline by 12.9% YoY in 2026 to 1.1 billion units. The report says this would mark the lowest annual smartphone shipment volume in more than a decade, with smaller smartphone brands expected to face the biggest impact.
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