Budget smartphone manufacturers plan to reduce hardware specifications for devices launching in 2026, according to industry reports. TrendForce and Counterpoint Research attribute this shift to severe DRAM contract price increases that exceeded 40 percent across two consecutive quarters from late 2025 through early 2026. Memory market prices rose by an additional 80 to 90 percent quarter-over-quarter during the first quarter of 2026, forcing component cost adjustments throughout the supply chain.
Industry reports confirm hardware downgrades for sub-140 dollar devices driven by severe DRAM price increases
Several sub-brands of major smartphone makers are preparing new devices for the global sub-1,000 yuan segment, which equals approximately $140. These upcoming phones will likely revert to lower-end hardware configurations rather than continuing recent specification upgrades. The entry-level memory setups reportedly return to 6GB of RAM and 128GB of storage, while display panels remain limited to 1080p LCD technology.
- Display resolution: 1080p LCD panels
- Memory configuration: 6GB of RAM and 128GB of storage
- DRAM contract price increase: more than 40% for two consecutive quarters (Q4 2025 through Q1 2026)
- Memory market price increase: 80–90% quarter-over-quarter during Q1 2026
The hardware reduction includes a return to waterdrop notch designs for front-facing cameras on budget screens. A Weibo industry insider indicated that many budget phones will scale back hardware instead of improving it during the 2026 cycle. This development diverges from earlier industry forecasts, which anticipated that device makers would continue raising standard hardware levels across all pricing categories.
Xiaomi founder Lei Jun described the ongoing surge in memory prices as extremely aggressive and suggested users planning to upgrade their devices should do so sooner rather than later. A leading industry figure cautioned that elevated memory costs could remain high for up to two years, potentially forcing manufacturers worldwide to adjust their pricing models accordingly. Samsung and other major vendors face similar supply chain constraints as they prepare 2026 product lines.
A previous report from late last year suggested that 16GB of RAM could become rare in flagship phones by 2026 while 4GB models might return to the budget segment. Actual market adoption rates may vary based on how quickly component prices stabilize or continue rising. Device makers are expected to modify hardware specifications flexibly throughout early 2026 as ongoing discussions regarding global memory supply agreements continue to unfold.
Budget smartphone manufacturers confirmed plans to reduce hardware specifications for 2026 devices due to severe DRAM price increases exceeding 40 percent in late 2025 and early 2026. Entry-level phones will revert to 6GB RAM, 128GB storage, and 1080p LCD panels with waterdrop notches for the sub-1,000 yuan market segment.
Source: GIZMOCHINA
