The scarcity of memory chips is forcing smaller manufacturers of cell phones and notebooks to redesign their products, test components, and pass some of the additional costs on to consumers. In addition to the impact on prices, the uncertainty about supply threatens these companies' ability to produce their devices.
According to Reuters, companies such as Fairphone, Jolla, and Framework have adopted distinct strategies to cope with this shortage. The crisis is expected to last until at least 2027, although Jolla expects supply to only return to normal from 2028.
For smaller producers, securing sufficient memory has become an even greater priority than simply absorbing the increase in component costs. Raymond van Eck, CEO of Fairphone, told Reuters that, 'If you don't have allocation, you are out of the game anyway.'
The difficulty intensified late last year, a period when companies sought to secure stocks. Nirav Patel, CEO of Framework, reported that this led 'everyone to try to get as much supply and stock as possible, as quickly as possible,' worsening the shortage situation.
The market also reflects this impact on smartphone projections. Counterpoint Research estimates a 13.9% reduction in global smartphone shipments this year, totaling 1.08 billion units, representing the largest annual contraction ever recorded. The rising cost of memory makes entry-level models less viable for manufacturing.
Companies are also modifying the design of their equipment to create more options in case certain components become difficult to source. In the specific case of Jolla, tests involve an additional verification to confirm whether the chips are new and not refurbished parts sold as original items.
Although memory prices remain high, the growth rate has slowed. TrendForce anticipates an increase of 13% to 18% in conventional DRAM contracts this quarter, a level significantly lower than the 93% to 98% observed in the first quarter.
The effect is particularly severe on cell phones in the $400 range (about R$ 2 thousand). Raymond van Eck, from Fairphone, pointed out that memory can constitute almost 60% of the bill of materials for these devices. Thus, each manufacturer has developed a particular approach to managing the increase in costs.
The supply outlook remains constrained. In July, the CEO of SK Hynix warned that 2027 would be 'the worst year in the industry's history from a supply perspective,' with demand exceeding capacity even after 2030. Jolla, meanwhile, projects that supply will only stabilize from 2028. Until then, smaller manufacturers will have to deal not only with higher costs but also with the complexity of securing enough components to maintain production.