A memory chip price surge known as RAMageddon has dealt a severe blow to the global smartphone market. A portmanteau of RAM and Armageddon, the term describes a scenario where memory prices spiral out of control due to soaring artificial intelligence data center investments, leading to severe supply shortages.
According to market research firm Counterpoint Research on October 13, worldwide smartphone shipments in the third quarter dropped by a preliminary 20% compared to the same period last year. This marks the lowest third-quarter level since 2012, driven primarily by soaring memory prices and component shortages. As smartphone manufacturers pass rising component costs onto retail prices, the global average selling price of smartphones has jumped by about 20% this year.
Price hikes are also hitting domestic markets. Samsung Electronics raised the domestic launch prices of its ‘Galaxy S26’ series in early October, just seven months after release. The base 256GB model increased by about 150,000 won from 1.254 million won to 1.4036 million won, while the Ultra 1TB model rose by approximately 270,000 won. Apple similarly hiked the launch prices of its ‘iPhone 18 Pro’ series and raised domestic retail prices for the existing ‘iPhone 17’ series last month.
