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

Google races to put Gemini at the center of Android before Apple’s AI reboot

Google is using its latest Android rollout to position Gemini as the AI layer across phones, Chrome, laptops and cars.

Google is using its latest Android rollout to make Gemini less of a chatbot and more of an operating layer across the phone, browser, car and laptop, just weeks before Apple is expected to show its own Gemini-powered Apple Intelligence reboot at WWDC.
Ahead of its Google I/O developer conference next week, the company previewed a number of Android updates, including AI-powered app automation, a smarter version of Chrome on Android, new tools for creators, a redesigned Android Auto experience, and a sweeping set of new security features.
Alphabet is counting on Gemini to help Google compete directly with OpenAI and Anthropic in the market for artificial intelligence models and services, while also serving as the AI backbone across its expansive portfolio of products, including Android. Meanwhile, Gemini is powering part of Apple’s new AI strategy, giving Google a role in the iPhone maker’s reset even as it races to prove its own version of personal AI on the phone is further along.
Sameer Samat, who oversees Google’s Android ecosystem, told CNBC that Google is rebuilding parts of Android around Gemini Intelligence to help users complete everyday tasks more easily.
“We’re transitioning from an operating system to an intelligence system,” he said.
As part of Tuesday’s announcements. Google said Gemini Intelligence will be able to move across apps, understand what’s on the screen and complete tasks that would normally require a user to jump between multiple services. That means Android is moving beyond the traditional assistant model, where users ask a question and get an answer, and acting more like an agent.
For instance, Google says Gemini can pull relevant information from Gmail, build shopping carts and book reservations. Samat gave the example of asking Gemini to look at the guest list for a barbecue, build a menu, add ingredients to an Instacart list and return for approval before checkout.
A big concern surrounding agentic AI involves software taking action on a user’s behalf without permissions. Samat said Gemini will come back to the user before completing a transaction, adding, “the human is always in the loop.”
Four months after announcing its Gemini deal with Google, Apple is under pressure to show a more capable version of Apple Intelligence, which has been a relative laggard on the market. Apple has long framed privacy, hardware integration and control of the user experience as its advantages.
Google’s Android push is designed to show it can bring AI deeper into the device experience while still giving users control over what Gemini can see, where it can act and when it needs confirmation.
The app automation features will roll out in waves, starting with the latest Samsung Galaxy and Google Pixel phones this summer, before expanding across more Android devices, including watches, cars, glasses and laptops later this year.
The company is also redesigning Android Auto around Gemini, turning the car into another major surface for its assistant. Android Auto is in more than 250 million cars, and Google says the new release includes its biggest maps update in a decade and Gemini-powered help with tasks like ordering dinner while driving.
Alphabet’s AI strategy has been embraced by Wall Street, which has pushed the company’s stock price up more than 140% in the past year, compared to Apple’s roughly 40% gain. Investors now want to see how Gemini can become more central to the products people use every day.
WATCH: Alphabet briefly tops Nvidia after report of $200 billion Anthropic cloud deal

Technologies

Waymo recalls 3,800 robotaxis after glitch allowed some vehicles to ‘drive into standing water’

Waymo issued a voluntary recall of about 3,800 of its robotaxis to fix software issues that could allow them to drive into flooded roadways.

Waymo is recalling about 3,800 robotaxis in the U.S. to fix software issues that could allow them to “drive onto a flooded roadway,” according to a letter on the National Highway Traffic Safety Administration’s website.
The voluntary recall is for Waymo vehicles that use the company’s fifth and sixth generation automated driving systems (or ADS), the U.S. auto safety regulator said in the letter posted Tuesday.
Waymo autonomous vehicles in Austin, Texas, were seen on camera driving onto a flooded street and stalling, requiring other drivers to navigate around them. It’s the latest example of a safety-related issue for the Alphabet-owned AV unit that’s rapidly bolstering its fleet of vehicles and entering new U.S. markets.
Waymo has drawn criticism for its vehicles failing to yield to school buses in Austin, and for the performance of its vehicles during widespread power outages in San Francisco in December, when robotaxis halted in traffic, causing gridlock.
The company said in a statement on Tuesday that it’s “identified an area of improvement regarding untraversable flooded lanes specific to higher-speed roadways,” and opted to file a “voluntary software recall” with the NHTSA.
“Waymo provides over half a million trips every week in some of the most challenging driving environments across the U.S., and safety is our primary priority,” the company said.
Waymo added that it’s working on “additional software safeguards” and has put “mitigations” in place, limiting where its robotaxis operate during extreme weather, so that they avoid “areas where flash flooding might occur” in periods of intense rain.
WATCH: Waymo launches new autonomous system in Chinese-made vehicle

Technologies

Qualcomm tumbles 13% as semiconductor stocks retreat from historic AI-fueled surge

Semiconductor equities reversed sharply after a broad AI-driven advance, with Qualcomm suffering its worst day since 2020 amid inflation concerns and rising oil prices.

Semiconductor stocks fell sharply on Tuesday, reversing course after an extensive rally that had expanded the artificial intelligence investment theme well past Nvidia and driven the industry to unprecedented levels.

Qualcomm plunged 13% and was on track for its steepest single-day decline since 2020. Intel shed 8%, while On Semiconductor and Skyworks Solutions each lost more than 6%. The iShares Semiconductor ETF, which benchmarks the overall sector, fell 5%.

The sell-off came after a key gauge of consumer prices came in above forecasts, and as conflict in Iran pushed crude oil higher—prompting investors to shift away from riskier assets.

The preceding advance had widened the AI opportunity set beyond longtime industry leader Nvidia, which for much of the past several years had largely carried the market to new peaks on its own.

Explosive appetite for central processing units, along with the graphics processing units that power large language models, has sent chipmakers to all-time highs.

Market participants are wagering that the shift from AI model training to autonomous agents will lift demand for additional AI hardware. Among the beneficiaries are memory chip producers, which are raising prices as supply remains tight.

Micron Technology slid 6%, and Sandisk cratered 8%. Sandisk’s stock has surged more than six times over since January.