Smartphone RAM Crisis? 16GB Phones Expected to Vanish as 4GB Budget Models Make a Comeback

A looming memory crisis may see the RAM shortages reshape device offerings in 2025 in the smartphone industry.

Despite memes around skyrocketing RAM prices offering comic relief online, the actual effect is no laughing matter for both consumers and manufacturers.

Scarcity Around High RAM Devices

According to experts, 16-gigabyte RAM high-end phones could be a rare commodity, while budget-friendly 4GB models might make a comeback.

It includes an exerted pressure on the smartphone market by the unprecedented demand for HBM and GDDR5 DRAM chips driven by the rapid expansion of AI datacenters.

The flagship phones that once boasted 16GB RAM may soon vanish from the shelves as supply cannot keep up with demand.

Analysts warn that consumers seeking ultra-high-performance phones may have fewer options, with manufacturers struggling to source adequate memory modules.

Budget Phones With 4GB RAM Are Back

For price-sensitive markets, manufacturers are likely to respond to the shortage not by hiking prices but by cutting costs. This approach might see the return of affordable smartphones with just 4GB RAM, bucking a trend of ever-larger memory configurations. These devices will dominate emerging markets where cost efficiency drives buying decisions.

Midrange Prices and Consumer Impact

According to GSM Arena, it is said that Samsung also contemplated bumping up the prices for its mid-tier series due to the increased cost pressures, but ultimately, not all manufacturers will resort to such measures.

Instead, 6GB and 8GB RAM phones are likely to push aside 12GB units, with cuts in production possibly as steep as 40%, which can then make mid-range phones the new mainstream while high-end models become niche products.

AI Datacenter-driven Memory Shortages

Driven by this, the underlying cause is the increasing demand from AI datacenters for both HBM and GDDR5 DRAM around the world. In other words, these memory chips are highly essential in the facilitation of AI workloads, reducing the available supply to consumer electronics.

It is projected that smartphone manufacturers will be forced to make very tough choices between memory capacity, device price, and market competitiveness.