<div id="readability-page-1"><p>A severe shortage in DRAM chips is pushing memory prices to record highs. The trend is forcing companies that build laptops and smartphones to cut memory in new models, even as demand stays strong. Contract prices for 16Gb DDR5 chips have jumped nearly 300% in three months, climbing from around $6.84 in September to $27.20 in December 2025.</p><h3>Claim 70% Off TipRanks This Holiday Season</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>According to the specialized tech sector research group, TrendForce, companies such as Dell Technologies (DELL) and Lenovo Group (LNVGY) plan to reduce RAM from 16GB to 8GB in new mid-range laptops starting in 2026. Smaller builders like Paradox Customs are taking more extreme steps. Some of their desktop builds now ship without memory at all, leaving users to source RAM themselves.</p> <p>The smartphone market is also under pressure. Entry-level devices are expected to drop from 6GB or 8GB of RAM down to 4GB. Mid-tier phones could be limited to 6GB or 8GB instead of the 12GB setups seen in current models. IDC expects this shortage to stretch into 2027. However, some manufacturers say the problem could last until 2028.</p> <h2><strong>What's Driving the Crunch</strong></h2> <p>The main issue is that chipmakers are shifting factory space toward high-bandwidth memory, or HBM. That type of memory is used in AI data centers. It sells at a much higher price than standard DRAM. Companies such as Samsung Electronics (SSNLF) and SK Hynix have reported that their 2026 memory supply is already sold out.</p> <p>As a result, costs are rising fast. The price of a 12GB LPDDR5X chip used in Apple's (AAPL) iPhone 17 Pro has more than doubled this year. At the start of 2025, those chips cost $25 to $29. Today they are around $70. Apple's supply deals with Samsung and SK Hynix will expire in January 2026, which may force the company to accept higher rates or raise iPhone prices.</p> <p>Samsung has already told customers to expect memory price hikes of 30% to 60% in late 2025. IDC forecasts that average PC prices could rise by up to 8% in 2026. Smartphone prices are also expected to reach a new high, averaging $465 per device.</p> <h2><strong>Who's Most Affected</strong></h2> <p>PC makers and phone brands are feeling the most pain. Memory is a large cost in each product, and buyers expect better specs every year. When companies cut memory, they risk losing sales. If they raise prices, they risk shrinking demand.</p> <p>Meanwhile, memory suppliers such as Samsung, SK Hynix, and Micron Technology (MU) are benefiting. HBM demand from AI platforms such as those built by Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOGL) has created a pricing floor that yields strong profits for chipmakers.</p> <p>However, if DRAM shortages persist through 2027, chip buyers may push back. PC and phone companies could redesign their products to use less memory. Governments could also step in to rebalance the chip supply, especially in markets like Korea and China, where memory is a national focus.</p> <p>We used TipRanks' Comparison Tool to align all the stocks appearing in the piece. This tool is very useful for an in-depth look at each stock and the semiconductor industry as a whole.</p></div>

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<p>A severe DRAM shortage is causing memory prices to soar, forcing PC and smartphone makers to reduce RAM in new models. Contract prices for 16Gb DDR5 chips have surged nearly 300% in three months. Companies like Dell and Lenovo plan to cut RAM in mid-range laptops, while smaller builders may ship desktops without memory. The shortage, driven by a shift to high-bandwidth memory for AI data centers, is expected to last until 2027 or 2028, impacting PC and smartphone prices.</p>

- A severe shortage in DRAM chips is driving memory prices to record highs, with contract prices for 16Gb DDR5 chips surging nearly 300% from September to December 2025.  
- Companies like Dell and Lenovo are reducing RAM in new laptop models while smartphone manufacturers are cutting memory specifications, with expectations of rising smartphone prices averaging $465 per device.  
- Chipmakers are prioritizing high-bandwidth memory production for AI, leaving the DRAM supply tight, which could lead to further price increases and disruptions in the market until 2028.

AI Boom Sparks RAM Crisis: PC and Phone Makers Slash Memory Specs