AI RAM Shortage Puts Sub-Rs 9,000 Phones at Risk
AI RAM Shortage Puts Sub-Rs 9,000 Phones at Risk
IDC warns AI-driven RAM shortages push prices up and could make budget phones under Rs 9,000 uneconomical as shipments slump.
AI-driven RAM shortages are tightening the screws on the global smartphone market. IDC projects a 12.9% drop in shipments this year, bringing the total to about 1.12 billion units and marking the lowest annual volume in more than a decade. The crunch has pushed the average selling price higher by about 14%, and analysts say phones under Rs 9,000 could become permanently uneconomical as memory costs stay elevated. While prices may stabilize by mid-2027, the near-term outlook is grim for budget devices.
The regional impact is uneven: shipments in the Middle East and Africa are seen falling around 20% year over year, while China and the broader Asia-Pacific region (excluding Japan) are forecast to decline roughly 10.5% and 13.1% respectively.
The price pressure is echoed by industry voices; Nothing CEO Carl Pei warned brands may raise prices by 30% or more or downgrade specs, ending the 'more specs for less money' model in 2026. Entry and mid-tier markets could shrink 20% or more as buyers hesitate over higher price-tags.
IDC's forecast adds to a chorus of concern about the budget segment, with analysts noting that the AI RAM crunch could reshape the smartphone landscape for years as manufacturers rethink pricing, features, and supply strategies.
