The thirst for memory chips is changing the mobile market in Vietnam
(Dan Tri) - The global shortage of memory chips is creating far-reaching impacts, changing the smartphone market.
A report from market research company Counterpoint Research shows that global smartphone shipments in the third quarter recorded a decline of 20% compared to the same period last year.
According to analysis from expert Ivan Lam, the scarcity of memory chip components has pushed up production costs, forcing brands to transfer this cost pressure to consumers.
As a result, the average retail price (ASP) of the global smartphone market has increased by 20% since the beginning of 2026.
Mid-range smartphones are greatly affected
Research from Omdia shows that DRAM and NAND prices have continuously increased sharply in recent quarters and are expected to continue to increase in the near future. This reality turns the cost of memory chips into a financial burden that weighs heavily on smartphones from the low-cost to mid-range segment.
This fluctuation also upsets the cost structure of smartphone production. Even in the first quarter, the proportion of memory chip costs for the device segment under 400 USD nearly doubled, while the product group over 400 USD also recorded an increase of more than 100%.
The thirst for memory chips is causing smartphone prices to increase (Photo: The Anh).
Notably, in affordable smartphone models priced under 400 USD, memory chips currently account for nearly 60% of the total component cost. Manufacturers have tried to optimize by cutting costs in other parts such as display panels or sensors, but this measure quickly hit the ceiling.
Low-cost and mid-range smartphones are designed based on an extremely strict cost structure. Offsetting the burden of memory chips by narrowing the budget for other components is extremely difficult. Omdia analyst Zaker Li warns that the situation will get worse as the upward trend in memory chip prices continues in the coming quarters.
To protect already very thin profit margins, a series of brands such as Transsion, OPPO, vivo, Honor and Xiaomi were forced to significantly increase product prices.
However, the customer group in the affordable segment is inherently price sensitive, leading to the risk of a strong decline in market demand.
When low-cost product lines are no longer profitable and face a high risk of sales decline, manufacturers are proactively taking steps to withdraw from this segment.
In contrast to the low-cost segment, manufacturers have a lot of space to adjust costs in the high-end and high-end segments. The proportion of memory chip costs in devices over 400 USD will gradually decrease as the product price increases, especially in the group over 600 USD.
In this segment, components such as processors (SoCs), displays and camera modules account for a large proportion of total component costs. That allows manufacturers to flexibly reduce parameters in these parts to reduce pressure from memory chips. Brands must carefully calculate the balance between users' affordability, profit margin and product competitiveness.
New direction of smartphone companies
Faced with component price fluctuations, smartphone manufacturers must adjust their product strategies to maintain competitiveness in the market.
This trend is shown through a number of new smartphone models such as OPPO A7 Pro, Honor 600S, Xiaomi Redmi Note 17 Pro and vivo V80 Lite. Instead of just focusing on performance, manufacturers pay more attention to durability, battery life and after-sales policy.
Durability and battery are two important factors that smartphone manufacturers are focusing on promoting in the current period (Photo: The Anh).
In terms of durability, OPPO A7 Pro is introduced with a monolithic frame, component protection solutions and many dust and water resistance standards. Parameters under test conditions.
Xiaomi focuses on after-sales policy with a warranty program for the Redmi Note 17 series, while vivo V80 Lite targets customers who prioritize usage time with a 10,000mAh battery...
However, the large battery capacity is not enough to determine the overall experience. Weight, device thickness, charging speed, camera quality and ability to maintain performance after long periods of use are also factors buyers need to consider.
In the Vietnamese market, the price level and the division of smartphone segments are recording continuous fluctuations in the context of shortened product life cycles. Many manufacturers even have to adjust their listed prices right in the middle of the product cycle.
The low-price segment gradually lost its profitability, prompting a wave of companies moving to higher price segments. In that context, the mid-range segment will become the focus of fierce competition among smartphone brands in the near future.