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TrendForce: Recycled DRAM to hit 9% of smartphone market by 2027 as memory costs surge

Lena Fischer 4 comments 2 min read

TrendForce says recycled DRAM will hit 9% of the smartphone market by 2027 as rising memory costs push makers to use reballed chips in budget phones.

TrendForce: Recycled DRAM to hit 9% of smartphone market by 2027 as memory costs surge
PHONES

Smartphone makers turning to a money saving strategy that directly impacts low end phone buyers. According to TrendForce more smartphone makers are turning to reballed DRAM chips to save on manufacturing costs with rising component costs. This could mean end users buying budget smartphones could see their new phone arrive with recycled memory components.

TrendForce forecasts recycled memory will reach 9% of the smartphone market by 2027

Reballed DRAM chips are harvested from old electronics, reprocessed and equipped with new solder balls and re-used in new products. According to TrendForce, the reballed DRAM supply available right now is mostly 4 GB LPDDR4X memory modules designed for 4G smartphones. These types of modules are usually in phones costing less than $200, for the most price-sensitive consumer.

The forecast for the industry is that reballed memory will comprise of 3% to 4% of the smartphone market in 2026. With accelerating DRAM price hikes coming in Q1 of 2027, the percentage of reballed memory will grow to 7% to 9% in 2027. As memory costs rise it could also mean lower spec components begin moving up in pricing tiers. Changing the mid-range value proposition.

There are potential problems with using recycled memory components including quality concerns. There could be adverse effects on product reliability. As well as shorter product life cycles.

All of these things could mean more warranty claims and repair costs for smartphone makers and customers. It's a good thing for anyone buying low end smartphones to know that money saving strategies in the supply chain could affect long term product durability.

Source: NotebookCheck

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Discussion

4 comments

  1. M0therb04rd

    Recycled RAM in a new device is a bad deal. You pay for a new phone but get used parts. It is a cost cut disguised as innovation.

  2. Nadir

    Does TrendForce say if the warranty covers these modules? I am buying a phone for under two hundred dollars but I do not want it to break in six months.

    1. quarry33

      The article mentions shorter product life cycles and increased warranty claims. Manufacturers will likely face higher support costs. They are betting the savings outweigh the repair bills.

  3. janky42

    so basically the cheap tier gets the trash bin contents now 💀

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