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866 Budget smartphone market collapses under the weight of memory shortages, sales expected to drop 22% — memory alone now comprises up to 64% of the total cost of lower-tier smartphones

Tom's Hardware
Tom's Hardware · 07/08/2026 11:15 EDT

Budget smartphone market collapses under the weight of memory shortages, sales expected to drop 22% — memory alone now comprises up to 64% of the total cost of lower-tier smartphones

The global AI memory squeeze is pricing cheap phones out of existence and forcing mid-range devices to compromise on hardware.

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