Vendors are cutting or freezing memory capacity in low- and mid-range smartphones to manage costs, while premium models continue to receive upgrades, reports Omdia. Surging DRAM and NAND prices are driving this shift, forcing brands to protect margins in the budget segment while catering to less price-sensitive buyers at the high end.
Global smartphone shipments are projected to shrink by 12% in 2026, with the decline centered on devices priced below $400. Average DRAM and NAND capacities in budget phones have dropped compared to last year, as vendors either froze specifications or eliminated higher-capacity variants.
In contrast, premium smartphones are expanding. Average global capacity reached 8.3GB DRAM and 279GB NAND in Q1 2026, driven entirely by high-end devices. Storage growth is outpacing RAM, fueled by rising camera resolutions and user-generated content.
This polarization shows how vendors are reshaping product lineups. Budget portfolios are shrinking, while premium models remain resilient thanks to cost-saving strategies and stronger demand.
Also Read: Budget smartphones collapse as memory costs surge, report says
For consumers, the impact is clear: fewer affordable options with smaller memory, and premium phones that continue to grow in performance and price.
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