The ongoing memory chip shortage is significantly impacting budget smartphone manufacturers, with analysts indicating that producing low-priced handsets profitably has become nearly impossible. According to research firm Omdia, the cost of memory for smartphones priced under $100 is projected to increase by 400 percent in the third quarter of 2026. This would raise the bill of materials for the most common configuration from $14 last year to $70. Jusy Hong, senior research manager at Omdia, noted that current memory prices have already surpassed last year's total bill of materials for this market segment. Hong stated in a webinar on Friday that given the rise in memory costs, manufacturing smartphones below $100 is not feasible at the moment or in the near future.