How Samsung’s latest RAM decision will hurt budget Android phones
Samsung has taken its last orders for older LPDDR4 and LPDDR4X RAM, phasing out production to focus on higher-margin memory. This move is expected to worsen the ongoing RAM shortage, particularly impacting budget Android phones that rely on these cheaper chips. With supply tightening and costs rising, manufacturers may have to raise prices or cut features, reducing the value of low-cost devices. Even flagship phones could face cost pressures as overall DRAM demand remains high.
- ▪Samsung is ending production of LPDDR4 and LPDDR4X RAM, which are still widely used in budget Android smartphones.
- ▪The share of DRAM costs in sub-$200 phones has doubled from 13% to 26% year-over-year, with projections reaching 35% in Q2 2026.
- ▪Budget phone makers may be forced to raise prices or reduce specifications due to the RAM supply crunch.
- ▪Flagship phones are also affected as high demand for DRAM and HBM in data centers limits available capacity.
- ▪Any increase in LPDDR5 production will take months, with meaningful supply relief not expected before 2027.
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