Rising memory prices are starting to reshape smartphones’ internal economics. A combination of 12GB of RAM and 256GB of NAND flash storage currently has an acquisition cost of around 2,200 yuan, about $310, according to an estimate published by well-known Chinese leaker Digital Chat Station. A year ago, that same configuration was around 500 yuan, which would put the increase at roughly 340%. The figure doesn’t come from official manufacturer pricing and should be treated as a supply-chain estimate, but it lines up with the sharp price increases that analysis firms such as TrendForce have been tracking throughout 2026.
The memory price surge in 30 seconds
- A configuration of 12GB of RAM and 256GB of storage would have gone from about 500 to 2,200 yuan in a year, a 340% increase.
- That combination would cost even more than some high-end mobile processors, estimated at around 2,000 yuan.
- TrendForce confirms a sharp rise in mobile DRAM throughout 2026 as capacity shifts toward servers and artificial intelligence.
- Manufacturers are already cutting memory in some models and facing more pressure to raise prices.
The comparison stands out because for years the processor has been one of the most expensive components in a high-end phone. New chipsets (SoCs) built on cutting-edge processes keep getting more expensive, but memory has climbed much faster.
Digital Chat Station currently puts the approximate cost of a high-end mobile processor at 2,000 yuan, about $280, up from 1,500 yuan a year ago. If its estimates are correct, the RAM-and-storage combination would now cost around 200 yuan more than the processor itself.
The problem isn’t limited to the most expensive phones. Mid-range and budget device makers in particular have less room to absorb a component price increase of this size.
AI Is Changing Where It Makes Sense to Manufacture Memory
Behind the price surge lies a shift that began far from mobile phones.
Memory makers are dedicating a growing share of their capacity to servers, data centers, and high-bandwidth memory (HBM) used by AI accelerators. Manufacturing products with higher demand and better margins is more attractive than devoting the same facilities to certain consumer electronics components.
The result is lower relative availability for smartphones.
TrendForce has been warning about this for months. In May, it estimated that average prices for mobile LPDDR4X solutions would rise at least 70% to 75% quarter-on-quarter during the second quarter of 2026, while it expected LPDDR5X to see increases of 78% to 83%.
The increases have since moderated, but haven’t gone away. For the third quarter, TrendForce expects mobile DRAM contract prices to rise another 8-13% from the previous quarter.
The firm specifically points to the shift in capacity toward servers and HBM as one of the factors keeping supply tight.
This introduces an indirect consequence of AI’s growth that’s starting to reach consumers.
Large data centers need enormous amounts of memory and storage. Manufacturers have an incentive to meet that demand, while phones, computers, and other devices compete for limited industrial capacity.
NAND flash is going through something similar, though its outlook differs. Manufacturers such as SK hynix are already expanding NAND capacity to meet the growing demand, and TrendForce estimates NAND contract prices will rise 10% to 15% during the third quarter of 2026, still driven by demand tied to data centers and AI inference.
From 16GB to 12GB: Manufacturers Start Cutting Back
The impact of these increases can already be seen in design decisions.
Adding memory to a smartphone is no longer a relatively cheap upgrade. Going from 12 to 16GB of RAM, or doubling storage from 256 to 512GB, can noticeably raise a device’s bill of materials (BOM).
That forces a choice among several options: cut specs, raise the final price, accept lower margins, or some combination of these.
TrendForce says 12GB is becoming the dominant configuration in the high end, while adoption of 16GB models declines. In the mid-range, manufacturers are moving back toward 8GB configurations, and entry-level phones are clustering mainly around 4GB.
The shift is especially striking because it runs counter to the trend of recent years.
Manufacturers had used each new generation to progressively increase RAM and storage. In 2026, average installed DRAM capacity in smartphones will still grow, but the sharp price increases are curbing the more generous configurations.
And the problem doesn’t stop at RAM.
NAND used for storage is also under pressure. The market is running an estimated supply deficit of around 4-5% during 2026, according to TrendForce, though the situation could start easing during the second half of 2027.
The two types of memory could evolve differently from that point on.
While expanded production and weak consumer demand could bring NAND back to greater availability during 2027, DRAM would remain more strained by AI server demand and the shift of capacity toward higher-value products.
That’s why it’s worth avoiding an overly simple conclusion: not all memory will necessarily keep getting more expensive at the same pace.
More Expensive Phones and Less Memory to Contain Costs
For manufacturers, the problem is that consumers have a limit.
If a 12GB-and-256GB configuration really is approaching the $310 cost indicated by Digital Chat Station, passing that increase fully on to the sale price would be difficult, especially outside the premium segment.
TrendForce believes smartphone brands are reaching their tolerance limit on component prices and expects sale-price increases during the third quarter to partially offset the rising cost of LPDRAM. It also warns those increases could further reduce demand.
Manufacturers have another tool at their disposal too: software.
The firm notes that brands are working with developers to cut apps’ memory usage and are leaning more heavily on cloud services. If installing physical RAM becomes much more expensive, making the system need less memory can become a way to keep the device’s cost down.
This could even reshape some of the mobile market’s usual selling points.
For years, more RAM and more storage were simple specs to communicate and compare. Now, adding capacity can cost enough that manufacturers may prefer to invest in other parts of the device or reserve the higher configurations for pricier versions.
Smartphones aren’t the only ones affected, either. Laptops and other consumer electronics products compete for many of the same industrial resources, while memory makers find in data centers a market willing to absorb huge volumes of production.
The paradox is that AI’s expansion could end up raising the price even of phones that barely use advanced AI features.
Not because those devices directly need the same memory as a server, but because they compete within an industry that’s reallocating capacity toward the products with the highest demand and profitability.
The $310 figure for a specific configuration should still be treated as an unconfirmed supply-chain estimate. But the trends behind it are considerably more solid: mobile DRAM has gotten sharply more expensive, manufacturers are trimming certain configurations, and forecasts point to the pressure continuing through 2027.
For buyers, that could translate into an unappealing combination: more expensive phones and fewer chances of finding large amounts of RAM and storage outside premium models.
Frequently Asked Questions
How much does 12GB of RAM and 256GB of storage currently cost for a phone?
Digital Chat Station estimates an acquisition cost of around 2,200 yuan, roughly $310, up from about 500 yuan a year earlier. This is a supply-chain estimate, not an official price published by memory makers.
Why is smartphone memory getting so much more expensive?
One of the main reasons is manufacturing capacity shifting toward servers, data centers, and AI-related products, especially HBM. This reduces the relative availability of certain memory types intended for consumer electronics.
Will phones have less RAM in 2027?
Not necessarily all of them, but there’s already a trend toward more contained configurations. TrendForce says 12GB is gaining ground over 16GB in the high end, while manufacturers lean more on 8GB in the mid-range.
Will DRAM and NAND prices keep rising?
The outlook differs. TrendForce expects DRAM to remain tight through 2027, while NAND supply could gradually catch up with demand and ease prices during the second half of the year.
