Technologies

RAM Shortage Could Kill Budget Phones: The Latest Predictions at MWC 2026

Skyrocketing memory costs mean bleaker projections than even the worst predictions analysts made before.

The race to build AI infrastructure has gobbled up so much memory that prices have skyrocketed, with analysts predicting that product costs will rise as a result. But the outlook is far worse than anticipated. New reports and forecasts suggest that the RAM shortage could prompt manufacturers of cheaper devices to reduce or even stop production for some time.

Smartphone shipments are expected to drop by 13% through 2026 compared with last year, according to the International Data Corporation. This won’t just be a temporary crisis, but “a tsunami-like shock originating in the memory supply chain, with ripple effects spreading across the entire consumer electronics industry,” Francisco Jeronimo, vice president for Worldwide Client Devices at IDC, had previously said in a statement.

When reached at MWC 2026, Jeronimo predicted that this impact won’t happen immediately. Phone sales will stay pretty static over the first quarter of the year (which is almost over) as distributors buy as much stock as they can, but the shortage will start affecting phone production around the second quarter, between April and June.

Phones are already getting more expensive, as analysts predicted. The Samsung Galaxy S26 and S26 Plus, which both launched with a $100 price hike over their predecessors — though they also bumped the minimum storage to 256GB from 128GB. But the premium segment likely won’t be as affected as lower-cost, higher-volume phones, said Anshel Sag, principal analyst at Moor Insights and Strategy.

“That’s why you’re already seeing the Chinese [phone manufacturers] have to jack up prices already,” Sag said.

With the shortage, RAM prices are spiking, reaching three times last year’s levels, according to a Counterpoint Research report released at the end of February. The cheapest devices, already on thin margins, will likely see their profits evaporate. At that point, it’s not worth selling those phones.

“Some vendors are telling us that they are considering leaving that [budget] segment entirely, because if you sell a phone for $150, and half the cost is memory, where will you make money? There’s no point in selling products, right?” Jeronimo said.

If the cheapest budget segment drops out of the phone industry over the next year, that’s 10% of the global market that will be gone, Jeronimo noted.

The shortage is already affecting plans for the prices of phones set to launch. At MWC 2026, several phones were shown off without finalized prices, like the Unihertz Titan 2 Elite shown off at MWC that is soon being sold on Kickstarter. Before the RAM shortage, the price of an upcoming phone would be set weeks or months in advance of its release to store shelves. Now, it’s too risky to name a price until just before it’s sold. They just might not have enough memory to even supply the first batch of products at the preset price, Jeronimo said, and potentially raise prices thereafter.

As an example, the base Xiaomi 17 recently launched at 999 euros, but Jeronimo predicted that “the price they announced on stage is not the price they [will] see [the phone at]. The price in the store, in many operations, will be 100 euros more than what they said on stage,” he said.

When will the RAM crisis end?

Unlike last year’s tariffs and the financial fluctuations that phone-makers largely absorbed, the RAM shortage is unavoidable — there’s simply a lot less of these components to go around.

“This is not a short-term thing,” Jeronimo said. “You cannot build 1,000 factories in three or four months. [That would] take two to three years.”

At IDC’s current predictions, the crisis won’t last quite that long — only one and a half to two years, Jeronimo clarified. That could be shortened if other, smaller-tier suppliers start producing memory and alleviating the shortage, but the conditions he reported are dire, with RAM manufacturers requiring payment up-front for periodic shipments with the anticipation that the next slew of units could cost more.

But IDC’s analyst also put to bed another potential mitigation that had been floated late last year — that manufacturers would reverse their previous course of increasing RAM with each generation and actually trim it in the next. Even if it were cheaper to use less memory in phones, it would diminish the experience too much, causing too many retailers to return their phones for poor performance, Jeronimo explained. RAM isn’t just used to run AI models — it also lets people keep multiple apps open and operating at once.

On the component side, major companies aren’t commenting on the shortage and have even announced they won’t take questions on the matter at the start of press briefings.

Understandably, higher phone prices will likely lead people to hold off on upgrading, extending the time they keep their current handsets, said Dipanjan Chatterjee, vice president and principal analyst at Forrester. The onus is on the brands to counteract this upgrade lethargy in two ways, he said: diversify revenue streams to lean harder on non-phone sales, like Apple is doing with its services, and second, add more bells and whistles to make price increases more palatable.

Hence, Samsung is increasing the Galaxy S26 storage alongside its price hike. And Samsung itself is better positioned to capture sales with its tradition of strong deals and incentives during a product launch. When the Galaxy S26 lineup launched, it also offered trade-in and promotional deals to offset the $100 price increase, including pairing other gadgets with its phones.

While the RAM shortage is the biggest factor driving these price increases, other factors are at play as well. Global instability, including the recent war in the Middle East, is forcing transportation to be rerouted outside no-fly zones, raising the price of transporting products. Components across the board are getting pricier, too.

The good news is that this price spike won’t last forever. Eventually, the race to build more AI data centers will slow, and in addition to more memory fabrication spinning up, the prices will stabilize. But like every other consumer good that saw a price spike, they likely won’t drop in affordability to where they were before.

“I don’t think the price of memory will go down to the same levels as last year,” Jeronimo said.

Technologies

Passengers and crew foil co-pilot’s apparent attempt to crash FlyDubai flight to Israel

One of the pilots on a FlyDubai flight headed for Israel stabbed the second pilot, according to Israeli Prime Minister Benjamin Netanyahu.

On-duty flight crew and passengers managed to foil a pilot’s apparent attempt to crash a FlyDubai flight, after reports emerged of a fight in the cockpit.

The incident on flight FZ1073 from Dubai to Tel Aviv happened when a co-pilot stabbed a pilot, according to Israeli Prime Minister Benjamin Netanyahu, who praised the victim’s quick thinking.

“Despite being stabbed and seriously injured, he fought back, resisted, opened the cockpit door, and enabled passengers and crew to overpower the attacker — preventing a catastrophic mid-air disaster. He saved the lives of 174 people, including Israeli citizens and other nationals,” Netanyahu wrote in a post on X.

FZ1073 was diverted to the Tabuk airport in Saudi Arabia, the airline said, after being successfully secured and diverted by flight crew.

FlyDubai in a statement said that an “altercation” occurred on the flight deck of the plane, but did not mention a stabbing.

However, the airline added that the underlying reasons and motives for the clash is currently unknown, urging all parties to refrain from speculation.

The injured pilot was identified by Netanyahu as Indian national Smit Machchhar. No details have been released on the identity of the attacker, except that he was being interrogated by Saudi authorities.

The Indian embassy in Riyadh said on X that Machchhar is in a hospital in Tabuk, and is reported to be in stable condition.

The Israeli Prime Minister also identified the passenger who broke into the cockpit as Yaniv Hayun, calling him a “hero” and adding he deserved “a global medal of honor.”

Flight data from tracking site FlightRadar24 showed that the plane had experienced extreme altitude fluctuations before broadcasting a “general emergency” squawk code.

FZ1073 had dropped from over 14,000 feet in just 29 seconds, and FlightRadar24 also added that vertical speeds ranging from approximately -30,000 to +10,000 feet per minute were observed from the transponder data.

For context, vertical speeds during normal operations rarely exceed plus or minus 4,000 feet per minute, it added.

Technologies

South Korean President Lee Reins In Alaska LNG Project Participation Following Trump’s Endorsement

South Korea’s proposed $200 billion U.S. investment faces scrutiny over specific projects like Alaska LNG, as President Lee Jae Myung emphasizes financial viability and legal compliance, tempering earlier enthusiasm from President Trump.

South Korea’s proposed $200 billion investment in the U.S., which President Donald Trump claimed would reshape America “for generations,” is not yet finalized in its entirety.

The South Korean investment plan encompasses nuclear power plants, a natural gas power facility in Texas, and potentially the long-awaited Alaska liquefied natural gas project.

Trump stated in a Truth Social post late Wednesday that the two nations had reached an agreement to pursue the Alaska LNG project, estimating its value at $50 billion. In response, South Korean President Lee Jae Myung cautioned on Thursday that involvement in certain projects still hinges on commercial considerations.

Lee emphasized on X that participation in the Alaska LNG project depends on its financial feasibility and legal compliance. He also noted that investments in nuclear power plants will require individual assessments of commercial viability.

The U.S.-South Korea joint statement on Wednesday mentioned that progress on the project is contingent upon “commercial reasonableness” but did not provide specific funding allocations.

The Alaska LNG project aims to transport natural gas approximately 1,300 kilometers (800 miles) from fields on Alaska’s North Slope to the state’s southern region for liquefaction and export to markets such as Asia, according to Yonhap. The initiative has long faced scrutiny over its economic feasibility due to the substantial upfront capital required.

Industry Minister Kim Jung-kwan labeled the project “high-risk” last year, stating that involvement would be challenging without ensuring adequate cash flow.

Overall, the investment package includes $22.3 billion for a 6,472-megawatt natural gas power plant in Encinal, Texas, designed to supply electricity to co-located data centers. The project will be spearheaded by developer Related Cos. and U.S. energy company NextEra Energy.

Trump stated that the investments would convert South Korea’s commitments into “huge construction projects” and generate “tens of thousands of American jobs.”

“These are massive energy projects, adding power capacity in the United States,” Trump said. “This is new construction, new manufacturing, and great jobs for American workers.”

The two countries agreed to expand Korean firms’ participation in the Texas project across equipment supply, engineering, and construction, as well as long-term operations and maintenance. The U.S. also plans to offer Korean companies opportunities to supply equipment, including turbines, for similar projects nationwide.

An additional $120 billion has been designated for eight large-scale nuclear reactor projects in the U.S. Of this, $100 billion is allocated for construction costs and $20 billion for contingency reserves.

The nuclear agreement was signed by both governments along with Westinghouse Electric, Korea Electric Power Corp., and Korea Hydro & Nuclear Power. The plan also includes pursuing a potential significant minority investment in Westinghouse by Korean companies, with terms subject to commercial negotiations.

Technologies

SEC Advances Crypto Custody Rules as Major Legislation Languishes in Congress

The SEC has proposed new crypto custody rules for investment advisers and funds while comprehensive legislation remains stalled in Congress, creating a regulatory pathway for digital asset holdings.

The U.S. Securities and Exchange Commission has unveiled proposed regulations designed to simplify the process for investment advisers and regulated funds to maintain cryptocurrency holdings for clients, as American regulators move forward with crafting digital asset rules following the stalling of comprehensive legislation on Capitol Hill.

The proposal, revealed Thursday, would create a specialized framework governing how registered investment advisers, investment companies, and business development companies maintain custody of crypto assets.

The modifications aim to update decades-old custody requirements and eliminate regulatory obstacles that the SEC says have restricted advisers’ capacity to provide crypto-related investment options.

Under the proposed regulations, crypto assets could be held in self-custody under “certain circumstances,” while state trust companies could also function as custodians for crypto assets belonging to clients and regulated funds.

The changes could also grant regulated funds expanded authority to offer investors crypto-related investment strategies, according to the SEC.

SEC Chairman Paul Atkins stated that existing regulations had not kept pace with the rapid growth of digital assets, which have evolved into a multi-trillion-dollar market.

“Today’s proposal would provide a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before,” Atkins said.

The proposal arrives as U.S. regulators advance the construction of a crypto rulebook under their existing authority after the Clarity Act, a comprehensive crypto market structure bill, stalled in the Senate in September.

This represents another step in the SEC’s broader initiative to reshape the U.S. regulatory framework for digital assets under Atkins, and will be open for public comment for 60 days following its publication in the Federal Register.

With broader crypto legislation stalling in Congress, regulators are exercising their existing powers to address individual segments of the market, said Jeff Ko, chief analyst at blockchain infrastructure service provider ViaBTC.

“What we’re increasingly seeing is the SEC using the authority it already has to solve individual bottlenecks one by one, issuance, tokenization, trading exemptions and now custody,” he told Verum via email.

The changes could also intensify competition among crypto custodians, potentially reducing the cost and complexity of investing in digital assets, he said, adding that institutional custody has historically been concentrated among a relatively small number of providers.

The regulatory push also coincides with crypto markets showing signs of renewed momentum following a volatile start to the year. Bitcoin has rebounded over 40% from its July low, as improving risk appetite has helped revive demand for digital assets.

The recovery follows a prolonged downturn from late 2025 into the first half of 2026.