{"id":21528,"date":"2026-07-08T06:45:59","date_gmt":"2026-07-08T05:45:59","guid":{"rendered":"https:\/\/innovatenews.site\/index.php\/2026\/07\/08\/android-phones-will-reportedly-see-more-downgrades-fewer-cheap-devices-as\/"},"modified":"2026-07-08T06:46:03","modified_gmt":"2026-07-08T05:46:03","slug":"android-phones-will-reportedly-see-more-downgrades-fewer-cheap-devices-as","status":"publish","type":"post","link":"https:\/\/innovatenews.site\/index.php\/2026\/07\/08\/android-phones-will-reportedly-see-more-downgrades-fewer-cheap-devices-as\/","title":{"rendered":"Android phones will reportedly see more downgrades, fewer cheap devices as\u2026"},"content":{"rendered":"
\n

The topic Android phones will reportedly see more downgrades, fewer cheap devices as\u2026<\/strong> is currently the subject of lively discussion \u2014 readers and analysts are keeping a close eye on developments.<\/p>\n

This is taking place in a dynamic environment: companies\u2019 decisions and competitors\u2019 reactions can quickly change the picture.<\/p>\n

Budget phones have been impacted the most by the rapid increases in RAM pricing, but that\u2019s expanding to more expensive devices. A new report shows that devices sold for under $400 are being hit hard enough to where they\u2019re gradually being left behind.<\/p>\n

\"\"<\/figure>\n

Omdia published a new report that says memory (RAM) now accounts for up to 64% of the cost of making a budget smartphone. That\u2019s for \u201cultra low\u201d devices that sell for $99 or less, but devices in the $100-400 segment are not far behind, with memory accounting for up to 59% of the total material cost. It drops from there, but every segment has seen the cost of memory more or less double over the past few months (compared to Q3 2025).<\/p>\n

Apparently, $400 is the current tipping point, with smartphone makers either increasing the cost on these devices or cutting them out of the lineup altogether. There will be a 22% drop year-over-year in smartphones under $400, Omdia says.<\/p>\n

Memory costs have become a serious burden for mid-to-low-end smartphones, contributing to a year-on-year decline of over 22% in the market for smartphones priced below $400.<\/p>\n

\u2026However, higher prices are likely to lead to a significant decline in demand, as low-end consumers are highly price-sensitive. Based on the memory price trend for the coming quarters, low-end products are already becoming unprofitable and face a high risk of weakening demand as retail price continues to rise. As a result, smartphone vendors are proactively and gradually retreating from the low-end segment in this year.<\/p>\n

It\u2019s not hard to see why brands are less incentivized to build these products, and it\u2019s also easy to see the impact it\u2019s having on new releases. Just today, Nothing released its Phone (4b) which was forced into a price point barely cheaper than the more-capable Phone (4a).<\/p>\n

Omdia adds that while there\u2019s likely to be a steep drop in these cheaper phones, shipments of new phones over $400 are expected to rise by 5.7% this year.<\/p>\n

The report suggests that more Android brands will opt to downgrade devices to save money that\u2019s being forced to RAM costs. These include downgrading display panels, \u201cmore flexible\u201d camera configurations such as lessening the number of camera sensors or using smaller sensors, as well as using last-gen SoC options.<\/p>\n

We\u2019re seeing some of that already. Motorola, for instance, stuck with the same chipsets across most of its Moto G and Motorola Razr series releases this year. As we\u2019ve mentioned, buying last year\u2019s hardware is more attractive than ever.<\/p>\n