Smartphone Memory Costs Soar, Driving Up Device Prices
Quick Look
- Smartphone memory is now the most expensive component, exceeding processors and displays.
- Costs have doubled multiple times, leading to price increases of up to $100 for new models and significant jumps in markets like India.
- Consumers are advised to buy ahead of further price hikes.
AI-generated summary
Why It Matters
Memory is now the most expensive component in smartphones, driving up overall hardware costs and device prices. Costs have doubled multiple times since development began for some models.
Memory is now the most expensive component in a smartphone. It’s more expensive than the processor, more expensive than the display, and can account for more than 50% of the total hardware bill.
For Phone (4a), memory costs doubled between when we decided to build the device and when it launched. They’ve doubled again since.
I posted about this earlier this year. It’s now playing out, faster than predicted.
Phone prices are going up, and they’ll keep going up into next year. Since February, new phones have been launching up to $100 more expensive than their predecessors. In India, phones above ₹30K have seen price jumps of ₹7,000 or more.
The natural instinct is to buy ahead. It doesn’t work that way. In a shortage, memory is allocated, not bought. You get what you’re given, at the current price.
If you’ve been waiting to upgrade a device, the best time was yesterday. The next best time is now. This year’s sale season won’t have the discounts people are used to.
What to Watch
AI outlook — possibilities, not facts
Phone prices will continue to rise into next year.
Very likely · Within months
Sale season discounts will be less significant than usual.
Likely · Within months
Open Questions
- Will memory prices stabilize or continue to rise?
- How will manufacturers adapt to sustained high memory costs?
