iPhone 17 series store at September launch. Yonhap News

A forecast suggests that smartphone and PC manufacturers will face cost pressures next year due to continued increases in memory prices.

According to market research firm TrendForce on the 11th, a sharp increase in memory prices is expected in the first quarter of next year, forcing smartphone and laptop manufacturers to raise product prices and adjust specifications downwards.

Consequently, TrendForce analyzes that shipment volumes will be further adjusted downwards, and market resources will become more concentrated among a few companies.

The proportion of memory in the Bill of Materials (BOM) for consumer devices such as smartphones and PCs is gradually increasing.

TrendForce explained, "Even Apple, with its strong profitability, will see a significant increase in the proportion of memory in the iPhone's overall BOM in the first quarter of next year. This situation may lead Apple to re-evaluate its new product pricing strategies and consider reducing or eliminating price reductions applied to older models."

There are also predictions that manufacturers adopting the Android OS, targeting the mid-to-low-end market, may also increase the ex-factory prices of their new models next year due to rising memory costs.

In response, it is anticipated that companies will adjust their product portfolios, procurement strategies, and regional sales strategies. In addition to price increases, a possibility of downward adjustment of product specifications is also being considered.

TrendForce stated, "Greater price fluctuations are expected in the PC market in the second quarter of next year. Specification reductions or upgrade postponements have become unavoidable cost-saving measures for smartphone and laptop manufacturers."

They further analyzed, "For high-end and mid-range models, DRAM capacity is expected to remain around the minimum standard, and upgrade cycles will also slow down. The low-end smartphone market will be the hardest hit, with the possibility of base models returning to 4GB (gigabytes) next year."

Trend in DRAM capacity changes within smartphones and laptops. Provided by TrendForce