DRAM Shortage Will Cause 'Seismic Shift' in Smartphone Market, But Apple Will Be Less Affected

Global representation scarcity volition origin a 13 percent driblet successful smartphone income successful 2026, according to IDC (via Bloomberg). DRAM is successful abbreviated proviso due to the fact that AI companies are buying immense quantities of high-bandwidth representation (HBM) for servers successful information centers, and manufacturers are prioritizing HBM alternatively of the representation utilized successful user devices.


IDC says that the planetary representation proviso has been drained into adjacent year, putting smartphone makers successful a pugnacious spot. Prices person spiked due to the fact that there's not capable representation to conscionable accumulation needs, which volition origin a smartphone marketplace "crisis similar nary other."

Smartphone makers are expected to vessel 1.1 cardinal devices successful 2026, down from 1.26 cardinal successful 2025.
"The tariffs and pandemic situation look a gag compared to this," said IDC Senior Research Director Nabila Popal. "The smartphone marketplace volition witnesser a seismic displacement by the clip this situation is implicit -- successful size, mean selling prices and competitory landscape. We don't expect the concern to easiness up until mid-2027, astatine least."
Cheap Android smartphones volition beryllium impacted astir heavy by expanding DRAM costs, but Apple is well-positioned to debar large interaction due to the fact that it focuses connected much expensive, premium devices. Apple has much nett borderline to enactment with and is amended capable to unafraid disposable DRAM supply.

Apple is expected to absorb higher representation costs successful the abbreviated term, but it isn't unaffected by the shortages. Just today, a study suggested Apple is paying Samsung doubly arsenic much for the LPDDR5X representation chips that it needs for producing iPhone 17 models.

During Apple's January net call, Apple CEO Tim Cook said that representation terms increases had a "minimal impact" connected Apple's gross borderline during the 2025 vacation quarter, but the institution is expecting a "bit much of an impact" during the archetypal calendar 4th of 2026.

IDC says that adjacent erstwhile the DRAM shortage is resolved, representation prices are not expected to instrumentality to 2025 levels, truthful determination could beryllium a imperishable displacement toward higher-priced smartphones.
This article, "DRAM Shortage Will Cause 'Seismic Shift' successful Smartphone Market, But Apple Will Be Less Affected" archetypal appeared connected MacRumors.com

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