IDC's February 2026 press release forecasts a record 12.9% YoY decline in global smartphone shipments due to memory shortage crisis, with particular impact on sub-$100 devices becoming economically unviable. While the content reports market dynamics affecting technology affordability for lower-income populations and discusses vendor consolidation, it does not explicitly engage with human rights dimensions of digital equity or access, treating market disruption as a pure economic phenomenon.
Meanwhile Apple iPhone sales were up 23% YoY end of last year. It'll likely be a good year for Apple, with a little more room in margin to make some plays, and a lottt of cash.
The DRAM shortage and lack of fab capacity have also caused the Playstation 6 to slip to 2029 or so.[1] Game consoles are vulnerable. They need a lot of RAM and have to sell at a moderate price.
The IDC article says that DRAM prices are not expected to come down again. "While memory prices are projected to stabilize by mid-2027, they are unlikely to return to previous level — making the sub-$100 segment (171 million devices) permanently uneconomical." Before, they always came back down in the next RAM glut, when everybody built too much capacity. Why is that not going to happen next time?
I recently upgraded from the Pixel 7 to the 10. Nothing but regret - the phone isn't worse, but it's not better either, and I had to reinstall everything. Why did I do this?
Somehow, with 12GB of RAM, I can't get my iPhone 17 Pro to keep more than a few safari tabs open without having them refresh when I come back from an app or two, and it makes me want to throw my phone across the train (Where the internet often cuts out!).
A lot of software has been squandering the massive hardware gains that have been made. I hope this changes when it becomes a lot harder to throw hardware at the problem.
I also wonder what this means for smartphone-esque devices like the Switch 2. If this goes on long enough I won't be surprised if they release a 'lite' model with less RAM/Storage and bifurcate their console capabilities, worse than what they did with 3DS > 2DS .
The latest phone reviews have been eyebrow raising.
The just announced pixel is the same phone as last year. I know it sounds like a usual complaint, but look at the actual specs, it literally is the same phone with differences so small that hey might have passed as regional variance.
As for the Samsung, the screen can darken when looked from the side for privacy. That’s pretty much it. Price increased though.
Coupled with the current iOS situation it seems like things are… rotting. Everything in decline.
Wait until we find out that all of tech (ever) has been subsidized by the true-so-far assumption of continued growth, allowing today’s costs to be paid for by tomorrow’s larger market.
Over investment in AI data centers is having a huge negative impact all over the economy. Other sectors are missing out on investment limiting their growth and stalling the economy.
Companies have reduced staff prematurely on the promise of productivity improvements that have not occurred and lost customers to terrible customer service and declining product quality.
Many hardware launches are going to be delayed or not meet expectations which really is the tip of the iceberg.
The US/SK memory cartel understandably sold out for a massive short term windfall but they their long term decisions to limit supply have created a huge opportunity for China. I wouldn't be surprised if this will go down in the history books as the start of the exit for US/SK from the industry and the start of Chinese dominance.
The smart phone industry is likely to respond with an increasingly hostile anti-consumer approach as they try and lock customers into the cabins of the sinking ship. I expect cheap and cheerful Chinese budget phones aren't going anywhere.
I am happy for ram, cpu and storage to stall. I want a more robust and open phone which can take a fall and be updated long after the vendor loses interest. I expect to uninstall most of my apps rather than install new ones as I increasingly disconnect from an ever more distracting and worthless medium. I have cancelled nearly every subscription service in the last 12 months. And I have been deleting a lot of free accounts and apps. Its like doing a big cleanup. Surprisingly rewarding.
HN has felt like more than 50% AI industry promoting blog spam of little interest to me as a reader for some time. I am setting a budget of ten, no make it five, more posts here. Then I am out for good. Account deletion and no looking back.
Dropped my iPhone couple of days ago so I had to go back to an old phone. Pixel 3a. Opens Signal and HomeAssistant faster than my 2022 iPhone ever did so why would I even buy a new phone and go back at this point. The best phones (prive/value) have already been built and sold.
13%!!! This should be a code red level event for … the world? I … don’t understand how world leaders are just standing by? Smartphone growth/adoption has been the bedrock of a LOT of economic growth. I would have expected massive Government intervention to avoid this.
Where are the China hawks? The argument for protecting Taiwan was that without their chips the smartphone market would contract, right? Thats whats happening now?!
I wonder if we will ever get an aproximate percentage of GDP or some other hard numbers for how much Sam/OpenAI (and the manufacturers ofc) hurt the global economy with all of this?
Less phones,computers,consoles,servers,etc sold (and everything that follows this) seems a way larger impact on the economy than a few thousand new ChatGPT Pro memberships...
Let's hope the component shortages will drive performance improvements in Apps as it will be unfeasible to expect higher specs to fix performance bottlenecks. Constraints can drive good behavior.
Because this shortage isn't natural, it's the result of OpenAI flexing monopsony power to deprive everyone else for its strategic gain. Unlike an organic shortage, there is no compelling reason for otherwise excess capacity to be built, since this artificial shortage can end as arbitrarily as it started.
One reason we end up with excess capacity is process improvements; adding new fabs to get more density or performance doesn't make old fabs go away, and so we go through cycles of excess capacity. Demand has been relatively constant.
Here we're facing different forces-- unprecedented demand for DRAM that may be durable. But it also looks like the pace of supply changes may be decreased as process improvements get smaller and the industry stops moving so much in lockstep.
It still matters what happens to the demand function, though. If enough AI startups blow up that there's a lot of secondhand SDRAM in the market, and demand for new SDRAM is impacted, too, that will push things down.
Sort of like what happened with the glut of telecom equipment after
You’re asking why a market that has had 3 price fixing lawsuits in less than 2 decades (criminal convictions in 1998, civil in 2006 and 2018) isn’t going to follow market dynamics?
The cool thing about Pixels is that not only will you have to pay extra for RAM because of AI, but some of the RAM you paid for will also be permanently reserved for local AI features, regardless of whether you use them.
> I wonder whether we’ll see a secondary effect in the resale market.
I'm paying more on ebay for thinkcentre tiny and thinkpads - 12th gen intel and newer.
Refurbished spinny drives have been steadily climbing - up 50% since late last year. That's on top of the 20% mystery jump that happened in the last week of 2024.
Upcoming Apple display mounted to wall or robot arm is rumored to have audio interface and new OS without 3rd-party apps, only "AI".
Jony Ive at OpenAI is rumored to have smart speaker, pendant, pen and bone-conducting headset in the launch pipeline. Audio interfaces, no screens,
Meta is selling millions of smart glasses, with Apple and others following.
If the memory market was not distorted, home AI + agents + open models could have a bigger role via AMD Strix Halo. Instead, they will be reserved for those who can afford to spend five figures on 512GB or 1TB unified memory on Mac Studio Ultra devices.
I feel like my 3GS was way better about resuming where I left off than any fancy new iPhone I’ve had in the past few years.
Big name apps like Facebook, YouTube, Apple Music, Apple Podcasts seem totally disinterred in preserving my place.
YouTube being the worst where I often stack a bunch of videos in queue, pause to do something else for a while and when I return to the app the queue has been purged.
OSes have been in decline for a long time. This memory price is just a blip, though. These supply and demand shocks happen periodically and always return to normal.
Also Python generators for the lulz. They help one to write extremely memory-efficient programs. Perhaps the memory shortage further helps cement Python in the language popularity charts, vis-à-vis languages that tend to load whole data in memory by default, like R.
I was trying to upload a 300mb video via the local police's web interface, a very important matter. I had to set my phone screen to stay on for 30 minutes and then leave the web browser open without touching it. Disabling all power saving measures makes not difference. This was the only way I could get it to finish uploading. I'm on a pixel 8 pro with grapheneos. Same thing in both Firefox and vanadium. I don't think it runs out of ram, the system is just too trigger happy. The battery still doesn't last all day anyway.
> Companies have reduced staff prematurely on the promise of productivity improvements that have not occurred and lost customers to terrible customer service and declining product quality.
Companies have reduced staff because of the impact of tariffs, because of low consumer confidence and spending, or as a ploy to pump share prices. Then they claim it’s AI, because it sounds a lot better to say that you’re reducing headcount because of AI than it does to admit that you’re cutting costs because of falling revenue.
> A lot of software has been squandering the massive hardware gains that have been made. I hope this changes when it becomes a lot harder to throw hardware at the problem.
Considering how many people are so averse to programming that they use LLMs to generate code for them? Not very likely IMO. I would like to see it happen, but people seem allergic to actually trying to be good at the craft these days.
> The latest phone reviews have been eyebrow raising.
It's eyebrow raising for me in other ways.
I have a Pixel 9a and it's been quite good with really solid battery life. It's barely 6 months old and I got it new straight from Google.
A few days ago I noticed the battery started to drain much faster than usual. I also noticed at the same time Google is pushing the 10a.
Nothing changed on my end. I barely use the phone in my day to day. In 10 hours today I sent 3 text messages with Whatsapp and lost 60% of my battery in that time frame. Up until a few days ago, 60% would last me 3 days.
I find it weirdly coincidental that the battery life went from amazing to worse than a 5 year old device I had prior to this just as they are releasing new phones. I've powered it down and given it a full discharge / charge too. It's still draining at an alarming rate.
We already are. Check eBay at the component level, which is showing it quite clearly. Look for secondary/reclaimed/refurbished components to backfill the gaps too.
Also be aware that this stuff whipsaws, if OpenAI actually takes posession of that memory and decides they can't use it and dumps, we're going to see a crash. Likewise if they back out of the deals with the memory fabs (or fail and default). There's some scary volatility on the horizon.
> The IDC article says that DRAM prices are not expected to come down again
Sure thing. I'd take a look at IDC & similar firms' forecasting history before worrying too much about what they say.
There is an AI boom right now. There will be a consolidation cycle at some point. When that happens half the players, if not more, will disappear. The huge hardware budgets will go with them.
We also can't be certain that the DRAM makers aren't capitalizing on this opportunity because they can. Remember: all of them are convicted monopolists. As in actual prison time convicted. And fined. And lost civil lawsuits. Multiple times.
I just can't see AI paying enough of a premium on HBM to justify the DRAM spikes. Frankly I can't see the volume either. Wafer starts on DRAM are dramatically bigger than you are probably imagining. DRAM is in practically everything these days. AI servers is but a drop in the bucket. 10% of the market? Yeah right, if its 4% I'd be shocked. And you are telling me a shift of 4% of wafers to HBM is driving these prices and shortages?
I humbly suggest if you look at the numbers something smells funny.
Disclaimer: none of us has access to the actual data, a lot of it is inferred by industry players. Some are well connected and usually accurate but that is not evidence. Therefore it is possible this is a genuine market action and nothing nefarious is going on.
> Well, actually, there is one other important reason for this article’s existence I'll tack onto the end – a hope that other people start digging into what’s going on at OpenAI. I mean seriously – do we even have a single reliable audit of their financials to back up them outrageously spending this much money…for this? Heck, I’ve even heard from numerous sources that OpenAI is “buying up the manufacturing equipment as well” – and without mountains of concrete proof, and/or more input from additional sources on what that really means…I don’t feel I can touch that hot potato without getting burned…but I hope someone else will…
And I'd say if it ends up being shown there even is the slightest hint of impropriety going on, trial him. Up to and including capital punishment for the entire board and C level - what OpenAI already has done, even if legally on paper, IMHO is the biggest market manipulation in history, and it's not just one competitor that is suffering but society as a whole.
I don't have an issue with big companies and their super rich investors engaging in petty bitch fights. By all means, hand me some popcorn and soda. But the RAM situation, with everyone not being super rich and flush with cash from AI crazed investors being screwed royally? That is far beyond acceptable.
We need to send a message: you can't mess around with the world economy at that level without feeling serious repercussions. The lives of the billions are not playthings for the select few.
And if it turns out to be outright market manipulation, engaging in deals he doesn't even have the money committed for by others, much less actually have it on his balance sheet? Then it's time for the pitchforks, not even Madoff was this ruthless.
It's really nuts how much RAM and CPU have been squandered. In, 1990, I worked on a networked graphical browser for nuclear plants. Sun workstations had 32 mb memory. We had a requirement that the infographic screens paint in less that 2 seconds. Was a challenge but doable. Crazy thing is that computers have 1000x the memory and like 10,000x the CPU and it would still be a challenge to paints screens in 2 seconds.
I agree with you on the AI blogspam. This is a lot like the dot-com era, where a profusion of capital is causing people to develop complete horseshit products nobody needs. When the shine comes off, a lot of companies will fade, but many will stick around, and become the FAANGs of the 2030s.
In some ways it's pretty interesting to watch the entire world mobilize production for AI; some folks like to call this "hyperstition" as the future AGI reaches backwards in time to compel its own creation. Wild, but when trillions of dollars - i.e. millions of people's entire life output of work - are being put into something, it's truly an effort on a scale that no societal project has ever been before. There's no leader, nobody is in control, nobody has the grand vision other than "build the thing and get rich in the process". Amazing times to live in. The best use of our time and resources and coordination? Probably not... as we look around our broken cities, stepping over our poor and hopeless...
I remember a few years back when Jon Blow (Braid, The Witness) did a few talks about the fact that the biggest progress in recent years had been in hardware performance, making lazy software development standard since the hardware made it so easy to ignore any limitations.
I'm not as much of a fan these days but I do hope these limitations have the effect of improving best practices.
Forecasts report reduction in affordable technology access for lower-income populations without engaging welfare implications
FW Ratio: 60%
Observable Facts
Content states that 171 million devices in sub-$100 segment will become 'permanently uneconomical'
Forecast indicates rising component costs will be passed to consumers, with smartphone Average Selling Price rising 14% to $523
Middle East & Africa, described as having 'high concentration of low-end smartphones,' faces steepest 20.6% YoY decline
Inferences
The reported erosion of affordable device availability negatively impacts technology access for lower-income populations
The framing treats market consolidation and affordability reduction as inevitable outcomes without addressing human welfare dimensions or rights to standard of living
build 1ad9551+j7zs · deployed 2026-03-02 09:09 UTC · evaluated 2026-03-02 11:31:12 UTC
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