In an unexpected development, RAM prices are poised to play a crucial role in shaping smartphone prices for 2026. As Qualcomm and MediaTek prepare to release their latest application processors (APs) from TSMC’s facilities, the focus shifts away from AP pricing to the cost of RAM.
TSMC is set to utilize its third-generation 3nm process node (N3P) for the production of prominent APs, including the Snapdragon 8 Elite Gen 2 and the Dimensity 9500. By maintaining the 3nm process, chip manufacturers may be able to avoid significant price increases, allowing phone makers to control costs and maintain healthy profit margins without excessively raising consumer prices.
According to the reliable leaker Digital Chat Station on the Chinese social media platform Weibo, while TSMC will raise production costs slightly for its clients, the increase will be minimal. This situation should enable smartphone manufacturers to keep price hikes in check, benefiting consumers.
However, the landscape changes with the rising costs of LPDDR5X RAM memory chips, which have already seen a 5% increase, with further hikes expected later this year. These RAM price increases could lead to significant impacts on flagship smartphone models entering the market at the end of 2025, suggesting that RAM pricing might overshadow AP costs in determining overall smartphone prices in 2026.
Looking ahead, the potential introduction of LPDDR6 RAM could further complicate matters, as Samsung is accelerating its development in anticipation of its integration into devices featuring the Snapdragon 8 Elite 2 for Galaxy AP. This new RAM, manufactured using Samsung’s advanced 1c DRAM process, promises performance and energy efficiency improvements, further highlighting the increasing significance of RAM pricing in the smartphone market.