Smartphones to pack more RAM despite AI-fueled shortage lasting through 2027

RAM Shortage Intensifies as AI Demand Outpaces Supply

The tech industry faces a persistent RAM shortage that shows no signs of easing, with forecasts indicating the crisis will extend through 2027 1

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. According to a report from Korean outlet ETNews, the AI-fueled shortage stems from limited production capacity that cannot match the surging demand for AI applications across multiple sectors 2

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. This global memory shortage has created a scramble for DRAM resources, with memory prices jumping and availability tightening as manufacturers struggle to expand output fast enough.

Production Capacity Lags Behind Market Needs

Major chip makers face significant constraints in addressing the supply crisis. Samsung, one of the world's largest memory producers, is expanding its production facility but prioritizing High Bandwidth Memory for data centers and large AI systems rather than consumer devices 1

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. Meanwhile, China-based CXMT is growing its memory production but focusing primarily on the Chinese market instead of global distribution, meaning worldwide shortages will likely persist 2

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. This strategic focus by manufacturers leaves consumer-facing sectors competing for increasingly scarce resources.

Smartphones Lead Device Memory Expansion

Despite the ongoing constraints, overall memory demand is estimated to grow by approximately 23% in 2026 1

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. Smartphones are projected to increase their memory allocation by roughly 16%, driven largely by the industry's push toward on-device AI capabilities. Data centers are expected to see a 25% jump in memory use, while automobiles may experience a dramatic 36% increase. PCs are forecasted to rise by 15% as well 2

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For consumers, this translates to noticeable changes in device specifications. Many flagship smartphones may transition from 8GB or 12GB configurations to 16GB setups, while budget-focused devices could shift from 4GB to 6GB or 8GB arrangements 1

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. Google Pixel devices have already demonstrated this trend, equipping phones with higher RAM capacities than competitors at similar price points to support their AI tools 2

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Higher Consumer Prices Loom on Horizon

The combination of increased production costs and price volatility in the memory market raises concerns about affordability. As manufacturers add higher RAM capacities to meet AI requirements, the financial burden may pass directly to consumers . This creates a challenging dynamic where devices become more capable but potentially less accessible, particularly as the shortage continues impacting supply chains through 2027. The question remains whether consumers will accept premium pricing for AI features that require substantial memory resources, or if manufacturers will need to find alternative approaches to balance capability with cost.