I recently came across a report from Counterpoint, and the memory price surge this time is really significant. DRAM prices have increased by over 50% this quarter, and NAND Flash has skyrocketed past 90%, which definitely puts pressure on smartphone manufacturers' costs.

The most noticeable impact is on entry-level devices. For a configuration like 6GB LPDDR4X + 128GB eMMC, the first-quarter BOM cost has increased by 25%, with memory costs now accounting for 43%. Mid-range phones are also feeling the pinch, with DRAM and NAND previously making up 14% and 11%, respectively, now estimated to rise to 20% and 16%. As for flagship models, using 16GB LPDDR5X + 512GB UFS 4.1, just the memory price increase could add an extra $100 to $150 in costs, raising the question of where that money will come from.

Counterpoint analysts have raised a question: OEMs now need to balance component costs, profit margins, and shipment volumes. Especially brands that rely on entry-level models to maintain market share will face more immediate profit pressure. Some manufacturers have already started adjusting their strategies, lowering shipment targets for entry-level devices or optimizing hardware configurations to control costs.

However, analysts also say that relying solely on traditional cost-control measures may have limited effectiveness. If memory prices stay high, retail prices will need to follow suit. Entry-level phones might see a price increase of around $30, while high-end models could go up by $150 to $200. The volatility in memory prices is beginning to impact the overall cost structure of the smartphone industry, and this trend warrants ongoing attention.