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Memory and Storage Chip Prices Tipped to Crash Next Year, But the Shortage Could Last Longer

Memory and Storage Chip Prices Tipped to Crash Next Year, But the Shortage Could Last Longer

The ongoing DRAM and NAND stick shortage is fuelled by the unprecedented increase in AI adoption.

Written by Dhruv Raghav, Edited by Rohan Pal | Updated: 24 July 2026 17:56 IST

Memory and Storage Chip Prices Tipped to Crash Next Year, But the Shortage Could Last Longer

Photo Credit: Unsplash/ Liam Briese

RAM shortage has forced OEMs to raise the prices of their phones

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Highlights

CMF recently paused the launch of its new phones for this year
Global smartphone shipments could hit a record low
OEMs have raised the prices of their phones

Smartphones, along with various other consumer electronics, have seen an unprecedented price hike recently. Tech firms across the world have had to raise the prices of their devices to offset the rise in the cost of critical components used to manufacture phones, laptops, tablets, and gaming consoles. Prices of memory and storage components, like DRAM and NAND sticks, have risen exponentially in recent months because of an ongoing shortage, as RAM and storage stick manufacturers have redirected chip supply to meet the demand of the booming AI industry. Now, a tipster claims that prices are expected to fall next year as the two companies offload stock in the market.

RAM and Storage Shortage Could Last Till First Quarter 2028

In a post on X, tipster Yogesh Brar (@heyitsyogesh) claims, citing industry sources, that two Chinese chip manufacturers, namely ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC), are currently stockpiling DRAM sticks. The two companies will reportedly offload their accumulated DRAM chip stock in the market next year.

Ram Shortage Discussion

When will the global RAM shortage problem be over?

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If this is true, the increased supply of memory chips could counter the ongoing shortage, leading to prices of electronic components falling drastically. While the prices could fall in 2027, the DRAM and NAND stick shortage is expected to last until the first quarter of 2028. Hence, component manufacturers could continue to focus on supplying memory chips to AI firms for their data centres. If the prices do fall next year, it remains unclear whether smartphone manufacturers will pass on the cost relief to customers.

Apple to Become Third-Largest Foldable Phone Maker Within Months of Launch

Smartphone prices have already been raised to unprecedented levels. Budget, mid-range, and flagship handsets now cost significantly more than they did before the shortage began. Nothing, being a relatively new brand, has already announced that it will not launch a flagship smartphone this year. On the other hand, Nothing's sub-brand CMF has paused all handset launches for this year, citing the ongoing RAM shortage pushing the prices of components.

IDC, the market research firm, in a recent report, highlighted that global smartphone shipments are expected to decline by 12.9 percent YoY in 2026 to 1.1 billion units. This is said to be the lowest annual handset shipment in terms of volume in more than a decade. Smaller vendors in the market are likely to be the worst hit by this anticipated slowdown.

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Further reading: RAM Shortage, Smartphones, AI

Dhruv Raghav

Email Dhruv Raghav

Dhruv Raghav is currently working as a Senior Sub Editor at Gadgets360. He has previously covered the North American financial markets as a Headline News Correspondent for a major news agency. After taking a sabbatical to prepare for the Civil Services examination, he returned to journalism to cover tech policy, with a special focus on AI laws and online gaming regulation. Now, he is back in Gadgets360 to write features and edit stories. To unwind, he likes to spend time with his PS5, listening ...More