Budget smartphone market collapses under the weight of memory shortages

The global memory shortage is significantly impacting the smartphone market, particularly the budget segment, which is facing a sharp contraction. According to Omdia's latest analysis, shipments of sm... Read original →

The strategic shift of DRAM/NAND capacity toward HBM is triggering a cascading collapse across the smartphone tech stack. With memory now consuming up to 64% of BOM costs in sub-$400 devices, OEMs like Xiaomi and Transsion have no room to cut corners—forcing exits from the ultra-low-end segment. This ripples upstream: SoC and LTPS/LTPO display suppliers face shrinking order volumes as total unit shipments plummet. Geopolitical export controls from the U.S., Japan, and the Netherlands further lock in supply rigidity, preventing Samsung, SK hynix, and Micron from reallocating wafer starts quickly. In response, OPPO and Vivo may accelerate premiumization, while Taiwan, China’s foundries grapple with lost low-end orders and underutilized advanced nodes. Over the next 12–24 months, even new fabs coming online won’t revive the budget market—the era of sub-$200 smartphones is effectively over, consolidating the industry into fewer, higher-priced tiers.