Memory prices are climbing so rapidly that manufacturing profitable smartphones priced under $100 is becoming “impossible,” warn analysts. Omdia data indicate the memory bill for phones sold below the $100 mark is expected to surge 400% in Q3 2026, pushing the memory portion of a typical configuration from $14 to $70 in a single year.
Key figures and source of estimates
– The projections come from research firm Omdia.
– Jusy Hong, senior research director at Omdia, notes that current memory prices have already, as of today, exceeded the total bill of materials (BOM) observed for this segment last year. Hong made these remarks during a webinar on Friday.
Why this makes sub-$100 phones “impossible” to build
– For devices retailing under $100, memory is a large share of the hardware cost.
– If the memory component rises from $14 to $70, the additional cost wipes out the thin margins for these ultra-low-cost models. According to Omdia, that makes profitable production of such phones untenable.
Expected impact on vendor lineups
– Faced with these cost increases, major manufacturers are likely to exit the loss-making ultra-low-cost segment and concentrate on higher-margin mid-range models.
– Omdia expects this shift to push average retail prices upward, even though consumer demand for inexpensive devices remains strong.
Outlook for the low-end market
– Omdia believes the ultra-low-cost segment could rebound once memory prices stabilize, potentially “in a year or two.”
– In the meantime, the firm says smaller local players might eventually revive these offerings, but — as Hong put it — “this market is simply disappearing” for now.
Note on sources
– The figures and statements above are based exclusively on data and comments provided by Omdia and on remarks made by Jusy Hong during the webinar.
