The surge in DRAM and NAND prices is bringing a structural shift in the BOM costs for manufacturers, as per analysts.
Memory components are said to account for over 10 percent of the BOM for iPhone 17 Pro Max
The insatiable demand for artificial intelligence (AI) and server capacity continues to wreak havoc in the memory market. According to a market research and consulting firm, the ongoing DRAM shortage caused memory prices to surge by up to 50 percent in 2025. It is also anticipated to soar by another 50 percent in the first quarter (Q1) of 2026, significantly impacting not just the hardware manufacturers, but also the end user, as the cost of devices increases along with the Bill of Materials (BoM).
According to Counterpoint Research's Memory Price Tracker for January 2026, memory prices increased by 40 to 50 percent in Q4 2025. A stick of 64GB RDIMM RAM surged from $255 (roughly Rs. 23,000) in Q3 2025 to $450 (roughly Rs. 40,500) in the fourth quarter, translating into a price hike of about 75 percent.
The market intelligence firm suggests that the price for the RAM may reach $700 (roughly Rs. 63,000) by March 2026. Analysts say it would not come as a surprise if memory prices surpass the $1,000 (roughly Rs. 90,000) mark. It could reach as high as $1.95 (roughly Rs. 175) per GB, which is said to be almost double the 2018 high, when it was recorded at $1 (roughly Rs. 90) per GB.
Per Counterpoint, the surge in DRAM and NAND prices is bringing a structural shift in the BOM costs for hardware manufacturers. For example, the memory components are said to have accounted for more than 10 percent of the BOM of the iPhone 17 Pro Max. This number could be even higher for top-of-the-line variants.
If the current price hikes continue, smartphones featuring 16–24GB LPDDR5X RAM and 512GB–1TB UFS 4.0 onboard storage may see 20 percent or more, of the total BOM, account for just the memory components.
This suggests a substantial increase compared to five years ago, when it accounted for about 8 percent of the BoM for the iPhone 12 Pro Max.
This, however, is impacting consumers too. Amid the ongoing Consumer Electronics Show (CES) 2026, Samsung's President and Chief Marketing Officer, Won-Jin Lee, reportedly stated that the ongoing memory chip shortage is worsening, and it may prompt the company to reprice its devices in the coming days.
In a recent conversation with Gadgets 360, Francis Wong, Chief Marketing Officer at Realme India, stated that smartphones launching in 2026 will be more expensive than those with similar specifications in 2025. “This trend is unstoppable and will continue till H2 2027,” the official added.
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