Rising Memory Costs Drive 34% Drop in Africa's Sub-$100 Smartphone Shipments
According to an Omdia report, shipments of smartphones priced under $100 in Africa plunged by 34% year-over-year in Q2 2026. This decline is primarily driven by rising memory component costs, which are squeezing profit margins for entry-level devices. Sub-$100 smartphones have historically driven digital inclusion and financial access in Africa, meaning this supply chain pressure could slow down internet adoption. It also highlights how global AI infrastructure demand indirectly impacts consumer technology affordability in developing markets. Memory chips now account for over 64% of the total bill of materials for devices under $99, driven by AI data center demand for DRAM and NAND. In response, manufacturers are shifting from direct price cuts to device financing partnerships and optimizing non-essential hardware specifications.
## BACKGROUND
DRAM (Dynamic Random-Access Memory) is volatile memory used for active system tasks, while NAND flash is non-volatile storage used for saving data like photos and apps. The global surge in generative AI has led to massive investments in data centers, which require vast amounts of high-performance memory, creating a supply shortage that drives up prices for consumer electronics.