Rising memory chip costs are forcing Android smartphone makers to scale back launches of low-cost models, opening the door for easier competition from the iPhone.
The global surge in memory chip prices is placing heavy pressure on Android smartphone manufacturers, particularly those selling devices under $400 (around 13,360 baht). Market research firm Omdia states that sales in this segment may drop over 22% year-on-year, with many manufacturers expected to further withdraw from the lower-end market this year.
Some analysts view this situation as potentially beneficial for Apple's phones, since the price gap between iPhone and Android devices might narrow.
Recently, Apple raised prices on most of its products, from Apple TV, HomePod, iPad, and Mac to Vision Pro. However, the iPhone prices have not yet been adjusted in this round, though changes are anticipated in September.
Conversely, Android smartphones, which have traditionally covered all price ranges including many models below $400 (around 13,360 baht), are now facing severe pressure from sharply rising memory costs.
Omdia reports that these costs have become a heavy burden for mid- to low-range smartphones, causing the market for phones priced under $400 to shrink by over 22% year-on-year.
Omdia's consumer analyst team indicates that the situation will worsen, as memory prices are expected to continue climbing next quarter. Due to these price trends, lower-end phones are becoming unprofitable, and demand risks weakening further if retail prices keep rising. This is prompting smartphone makers to gradually retreat from the lower-end market this year.
This shift could indirectly affect consumer behavior, as many Android buyers who previously saw iPhones as too expensive might reconsider if Android phones also exceed $400. If Android smartphone prices rise to $500–600 (approximately 16,700–20,040 baht), entry-level iPhones might become more appealing to these consumers.
. 9to5Mac