The memory surge has a huge impact! Mobile phone manufacturers switch to second-hand disassembly materials to save costs, with entry-level models taking the lead

Memory prices continue to soar. In order to control costs, mobile phone manufacturers have begun to introduce reballed memory (Reballed Parts) in entry-level and affordable models, reducing material costs by recycling parts and reballing them. The latest research from research firm TrendForce points out that the penetration rate of disassembly materials in the smartphone market is expected to reach 3% to 4% in 2026, and is likely to climb to 7% to 9% in 2027, indicating that high memory prices are changing the cost strategy of the mobile phone supply chain.

The so-called "disassembled materials" refer to electronic chips or components that are disassembled from scrapped, damaged or old electronic product motherboards through heating and reprocessed, and then put into the market for sale or use again.

TrendForce observes that the disassembly materials currently circulating in the market are mainly LPDDR4X 4GB, which is mainly used in 4G mobile phones priced below RMB 1,299. Since consumers in the entry-level market are very price-sensitive, mobile phone brands use disassembly materials to reduce the cost of the complete machine bill of materials (BOM) to maintain the competitiveness of product prices.

TrendForce predicts that DRAM price increases may further expand in the first quarter of 2027, and cost pressure on mobile phone manufacturers will continue to increase. In the future, it is not ruled out that the use of downgraded components and disassembly materials will be gradually extended from entry-level models to higher-priced products. However, the impact of disassembly materials on the total bit consumption of smartphone LPDRAM in 2027 is still limited, and it is not enough to reverse the upward trend of DRAM contract prices.

Although disassembly materials can reduce costs in the short term, there are problems such as complex material sources and inconsistent quality and stability in different batches, which may affect the reliability and service life of mobile phones, and even increase warranty and maintenance expenses. For mobile phone brands, how to strike a balance between reducing parts costs and maintaining product quality will become an important test in an environment of rising memory prices.