AI Drives Smartphone Market Shift: 4GB RAM Becomes Standard, Phone Prices May Rise

The smartphone market is facing a significant shift due to the ongoing RAM supply crisis triggered by the soaring demand for artificial intelligence (AI) development. Starting in 2026, smartphones are expected to reduce their RAM capacities as memory prices rise sharply and global supply tightens.

This shift marks a break from recent years, during which smartphone RAM sizes consistently increased and served as a major selling point. Now, manufacturers must adapt to constrained memory availability, influencing their design and pricing strategies.

Decline of High RAM Smartphones

High-RAM models, particularly those with 16GB, are expected to become rare and limited to select premium lines. The presence of 12GB RAM variants is also predicted to decline significantly. Producers are cutting back on offering large RAM options due to escalating memory costs and supply shortages.

Instead, configurations with 6GB and 8GB RAM will dominate the mainstream market, especially in regular series, as companies aim to keep retail prices stable. This represents a considerable reversal from previous trends where larger RAM was a key advantage.

Pressure on the 8GB RAM Standard

Even 8GB RAM, long considered the standard for mid-range and entry-level phones, faces notable downsizing. Market forecasts indicate that the share of smartphones featuring this capacity could drop by more than 50%.

In some phone families, 6GB RAM is set to become the baseline specification, reflecting supply constraints rather than changes in user needs. This adjustment highlights the hard choices brands must make under component shortages and rising production expenses.

Entry-Level Devices Revert to 4GB RAM

Entry-level smartphones are seeing the most drastic changes. Devices that started offering up to 8GB RAM are predicted to retreat to 4GB RAM models to reduce production costs.

While 4GB is still sufficient for basic tasks, this regression signals a sharp recalibration versus recent years’ trends toward progressively higher specs. The move is a compromise to maintain affordability amid higher component prices.

Mid-Range Segment Simplification

Mid-range smartphones, which now commonly range from 6GB to 12GB RAM, will be streamlined. Many product lines will cap RAM at 8GB, reserving 12GB options for select, higher-priced models.

This gradual transition is expected to begin in early 2026 as manufacturers realign their offerings to the new market realities.

AI’s Role in RAM Shortages

The primary cause behind the RAM crisis lies in the booming AI industry’s demand for high-bandwidth memory (HBM) and extensive storage to train large-scale models. Memory producers have diverted part of their production from consumer DRAM to HBM components needed for AI infrastructure.

Consequently, the supply of RAM used in smartphones and laptops has shrunk, pushing prices upward. This shift in production priorities illustrates how AI development is reshaping the hardware supply chain.

Rising Device Prices Despite Lower RAM

Despite shrinking RAM sizes, smartphone prices are unlikely to drop. Instead, higher manufacturing costs could lead brands to raise device prices across smartphone and laptop categories.

This scenario presents a dilemma for consumers, who may face increased expenditure on devices even as core specifications like RAM decrease compared to prior generations.

Long-Term Impact on the Industry

Industry projections suggest that the RAM shortage will continue at least until the end of 2027. AI’s growing memory needs show no sign of slowing, sustaining pressure on RAM supplies.

For the smartphone market, this signals a new phase of adjustment. After years of progressively enhancing device specifications, manufacturers must now navigate production and pricing strategies strongly influenced by global AI demands and component availability.

Summary Table: Expected RAM Trends in Smartphones from 2026

Manufacturers face a complex outlook with higher memory costs and limited supplies shaping device specifications and prices for the foreseeable future. Consumers may need to adjust expectations as the smartphone landscape evolves alongside AI-driven industry changes.