Omdia: Rising memory costs to slash budget smartphone market 22%
- Source
- Omdia
- Time
- 10:43 AM
- Weight
- 94/100
According to latest research from Omdia, rising DRAM and NAND prices are significantly reshaping the smartphone market, particularly impacting devices priced below $400. Memory costs now account for nearly 60% of the total bill of materials for budget handsets, and more than 64% for those priced under $99.
This financial pressure is expected to lead to a 22% decline in shipments for the sub-$400 segment this year as manufacturers struggle to maintain profitability in a price-sensitive market. To mitigate these costs, smartphone vendors are increasingly shifting their focus toward mid-to-high-end products priced above $400, which are expected to see a 5.7% growth.