The budget smartphone market is taking an unexpected turn in 2026.
According to a reliable industry insider, several sub-brands of major phone makers are preparing devices under 1,000 yuan (around $140).
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Many of these phones will scale back hardware instead of improving it.
The report says upcoming budget phones will continue using 1080p LCD panels and bring back the waterdrop notch.
Entry-level memory configurations are reportedly reverting to 6GB of RAM and 128GB of storage.
This isn't the first time such news has surfaced.
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A report late last year suggested 16GB of RAM could become rare in flagship phones by 2026, while 4GB of RAM could become more common in budget devices.
Memory Crisis Blamed
The biggest reason is the sharp increase in memory chip prices.
According to TrendForce, global DRAM contract prices rose by more than 40% for two consecutive quarters from Q4 2025 through Q1 2026.
Another report from Counterpoint suggests the situation may be even more difficult.
It says prices across the memory market increased by 80–90% quarter-over-quarter during Q1 2026, with DRAM, NAND, and HBM chips all reaching record highs.
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Xiaomi founder Lei Jun also said the ongoing surge in memory prices has been “extremely aggressive” and predicted prices could continue climbing over the next two years.
He suggested users planning to upgrade their phones may want to do so sooner rather than later.
Not long ago, many affordable smartphones launched with 8GB of RAM and 256GB of storage as standard.
However, as component costs continue to rise, manufacturers are rethinking their entry-level strategies.
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If memory prices remain high, higher-capacity variants could become increasingly expensive, while budget phones may continue making compromises that many buyers thought were a thing of the past.
