Learn how soaring RAM and storage prices are driving up smartphone costs, with flagships expected to rise by $100-$200. Get insights on market trends and tips for buyers.
© A. Krivonosov
The rising costs of RAM and storage are starting to seriously impact the smartphone market, and the effects are becoming noticeable. According to a Xiaomi executive, the price of popular memory configurations has nearly quadrupled over the past year, putting significant pressure on manufacturers.
High-demand options, like 12GB of RAM and 512GB of internal storage, have increased by about 1,500 yuan, equivalent to roughly $200. More expensive configurations, including versions with 16GB of RAM and 1TB of storage, have seen even sharper cost hikes, making flagship devices notably more expensive for companies to produce.
Experts point out that users aren't fully feeling this price increase yet. This is because manufacturers are working with pre-purchased components, and supply contracts are signed long before devices launch. However, as inventory runs low, brands will be forced to gradually pass the higher costs on to consumers.
Analysts estimate that flagship smartphone prices could rise by $100 to $200 in the near future, and that's just a conservative forecast. Some companies have already started adjusting prices, and in the future, budget and "value" models might almost disappear from the segment.
This situation highlights that the era of affordable flagships is gradually fading. For buyers planning to upgrade their devices, it might be wise to do so sooner rather than later, before the market fully adapts to the new pricing.