2 min learnNew DelhiFeb 27, 2026 01:00 PM IST
AI is already triggering a extreme RAM scarcity, pushing up the costs of many trendy digital gadgets. Now, this so-called “RAMageddon” may additionally result in a record-breaking drop in smartphone gross sales.
In accordance with analyst agency Worldwide Information Company (IDC), the reminiscence scarcity will trigger smartphone shipments to say no by a whopping 12.9%, marking the “lowest annual cargo quantity in additional than a decade.”
For years, the smartphone trade has been recording regular progress, with cellphone makers churning out new fashions each month or so. Nonetheless, the reminiscence scarcity brought on by AI has prompted the typical promoting value for a smartphone to hit new highs, with IDC now predicting a 14% improve.
“Whereas reminiscence costs are projected to stabilize by mid-2027, they’re unlikely to return to earlier stage,” says Nabila Popal, a senior researcher at IDC.
She added that telephones beneath $100 (approx Rs 9,000) will probably be “completely uneconomical” and that the RAM scarcity might trigger smaller gamers to exit the phase as they face cargo declines at larger costs than earlier than.
Within the Center East and Africa, this may trigger smartphone shipments to drop by 20% year-over-year, whereas in china and the Asia Pacific area (excluding Japan) will see a decline of 10.5% and 13.1% respectively.
In 2025, Counterpoint had predicted that there could be a decline in smartphone shipments, however that dip was stated to be jsut 2.6%.
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Final month, Nothing CEO Carl Pei had warned that as smartphone part costs improve, manufacturers could also be compelled to extend smartphone costs by round 30% or extra in some instances, or downgrade the {hardware} specs. He went on to say that the “extra specs for much less cash” mannequin, which a number of cellphone makers comply with, was not sustainable in 2026.
“In consequence, some markets, notably entry and mid-tier segments, are prone to shrink by 20% or extra, and types which have traditionally dominated these segments will battle,” Pei added.
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