Global DRAM and NAND Flash Crisis Drives 10–25% Smartphone Price Surge in Bangladesh

Over the past decade, smartphones have evolved from luxury items into indispensable parts of everyday life.

They are no longer limited to communication alone; smartphones are now deeply integrated into almost every aspect of human life, including office work, education, financial transactions, access to services, social networking, entertainment, and e-commerce. For people of all ages and income levels, smartphones have become a central element of daily routines.

As dependence on smartphones has increased, consumer expectations regarding pricing have also changed. Buyers now want devices that are affordable, durable, and capable of delivering strong performance over a long period. In price-sensitive markets like Bangladesh, consumers place the highest importance on "maximum value for money." They make purchasing decisions by balancing features and price, viewing smartphones not as luxuries but as long-term necessities.

However, in recent times, smartphone prices have risen significantly across Bangladesh and many other countries worldwide. In Indonesia and India, smartphone price hikes came into effect as early as November 2025, while Nepal adjusted prices in December of the same year. In Bangladesh, the impact of smartphone price increases has become clearly visible in 2026. Depending on market segments, smartphone prices have increased by approximately 10 to 25 percent.

According to analysts, the primary reason behind this price surge is the upward trend in the global prices of Dynamic Random-Access Memory (DRAM) and NAND Flash chips since the second half of 2025. During that period, DRAM chip prices increased by around 15 to 30 percent, while NAND Flash prices rose by approximately 5 to 10 percent.

This upward trend has continued into early 2026, with total memory chip price increases reaching about 55 to 60 percent by the beginning of the year. This has had a direct impact on smartphone production costs and retail prices.

One of the main reasons for rising memory prices is that a large portion of produced memory is being diverted toward AI data centers and cloud infrastructure, where demand is growing rapidly. As a result, the supply of memory available for consumer smartphones has become limited.

New-generation smartphones are increasingly being equipped with on-device AI capabilities. To effectively run these AI features, more powerful processors and larger amounts of RAM are required. Consequently, improved hardware configurations have increased manufacturing costs, which ultimately contribute to higher smartphone prices.

The impact of rising production costs has not been uniformed across all market segments. Entry-level or low-priced smartphones have faced the greatest pressure. Analysts note that since 2025, component costs for smartphones priced below USD 200 have already increased by 20–30 percent, with further increases in 2026. As a result, price pressure is felt most strongly in this segment.

In the mid-range smartphone category, component costs have risen by about 10–15 percent. Although premium or high-end devices are relatively better positioned to absorb these pressures, their component costs have also increased by 10–15 percent, which ultimately gets passed on to consumers.

However, this memory shortage is not affecting all smartphone manufacturers equally. Brands with relatively higher average selling prices have also increased their smartphone prices in recent times. On the other hand, brands that operate on low margins are being more heavily impacted by these price hikes, especially in price-sensitive markets like Bangladesh.

Analysts believe that this shift in the global semiconductor supply chain, driven by AI-related demand, is unlikely to end in the near term. As a result, pressure on smartphone prices may continue even beyond 2026.

Since Bangladesh's smartphone market relies heavily on international supply chains, the impact of global price increases has already been reflected in the local market. Over time, consumers are beginning to understand that this price hike is not a local issue, but rather the result of rising global production costs.