Historic reversal! Mobile DRAM memory cost surpasses SoC chip for the first time: the most expensive component has officially changed hands.

According to a Counterpoint report, smartphone memory prices surged over 80% quarter-on-quarter in Q2 2026, marking the first time that phone DRAM memory costs have surpassed SoC chips to become the single most expensive component inside a phone.

As a result, phone manufacturers are mitigating operational risks by slowing product iterations and streamlining configurations. In the entry-level market, material costs have surged 70% year-on-year, prompting manufacturers to scale back product expectations to cope with potential losses.

In the mid-range market, memory costs have climbed to account for 40% of total bill of materials, significantly reducing the common phenomenon of processor and imaging over-specification.

The impact is more visible in flagship phones, where material costs have risen nearly 50% year-on-year. As memory replaces chips as the core cost driver, the starting prices of new flagship phones are gradually moving upward.

This structural cost increase has diverted funds originally intended for screen and imaging innovation toward memory procurement, notably slowing the pace of product iteration across the industry.

Industry analysts believe that the commercial adoption of 2nm flagship chips in the future will further raise the material cost base. Even if terminal market prices continue to climb, the gross margins of new flagship phones will struggle to return to last year's levels in the short term.

Currently, although phone OEMs are continuously adjusting prices, the strong pricing power of memory chips limits any meaningful downward room for overall device costs.

This means the smartphone industry will face a prolonged period of profit pressure.