India, July 10 -- As memory prices continue to climb, smartphone makers are facing a difficult balancing act. The latest Omdia smartphone report highlights how rising DRAM and NAND costs are reshaping smartphone economics, putting the biggest pressure on devices priced below $400. The findings suggest that vendors are gradually shifting their focus toward premium models as maintaining profitability in the budget segment becomes increasingly challenging.

According to Omdia, DRAM and NAND prices have risen sharply over recent quarters and are expected to continue increasing. This has significantly altered smartphone bill-of-materials (BOM) costs. Between the third quarter of 2025 and the first quarter of 2026, the memory cost share nearly ...