Your next budget phone may come with recycled RAM as memory prices climb

Smartphone makers are increasingly turning to refurbished memory chips to keep production costs under control as DRAM prices continue to rise. So far, these components have mainly been used in entry-level and budget phones, but their adoption is expected to grow further in 2027.

Reballed memory is essentially recycled DRAM: chips recovered from older devices are reprocessed and fitted with new solder balls so they can be used again. Most of the current supply consists of 4 GB LPDDR4X modules, which are mainly used in 4G smartphones priced below $200.

Reusing recovered memory chips gives manufacturers a way to cut component costs and keep their devices affordable despite rising DRAM prices. This is particularly important in the budget segment, where even a small price increase can make a significant difference. According to research firm TrendForce, reballed memory is expected to account for 3–4 % of the smartphone market in 2026. That share could rise to 7–9 % next year.

TrendForce expects DRAM price increases to accelerate further in the first quarter of 2027, adding pressure to smartphone makers’ cost structures. As a result, the use of lower-specification components and reballed memory could gradually extend beyond budget models into higher price segments. TrendForce sees this as a potential cost-management strategy as brands adapt to a prolonged period of elevated memory prices.

Still, reballed memory is unlikely to make a major difference to the overall DRAM market. Even with wider adoption in smartphones, these chips are expected to account for only a small share of total annual LPDRAM bit consumption.

Reballed memory can provide short-term savings and help manufacturers maintain shipment volumes amid rising component costs. However, there are risks for both manufacturers and consumers. TrendForce notes that sourcing refurbished chips is more complicated and their quality can be less consistent. This could affect smartphone reliability and shorten device lifespans, while increasing warranty and repair costs for manufacturers and potentially damaging their reputations.