🧠 Food for thought

Implications, context, and why it matters.

Qualcomm’s new chipsets fit a market squeezed by memory costs

• Memory supply pressure is expected to last through 2026 and likely into 2027. International Data Corporation (IDC), a market research firm, expects global smartphone shipments to fall 12.9% in 2026 1.
• That squeeze is hurting low-cost phones. The sub-US$150 segment shipped more than 360 million units in 2025. IDC says devices below US$150 make up nearly 60% of shipments in Africa and 30% in India 1.
• The entry-tier Snapdragon 4 Gen 5 supports Low Power Double Data Rate 4X (LPDDR4X) memory. Qualcomm says LPDDR4X will remain available even as the memory shortage continues 2.
• The Snapdragon 6 Gen 5 adds tools such as 100x zoom and AI-based night vision. That gives phone makers more room to improve appeal while some brands cut Dynamic Random Access Memory (DRAM) and NAND flash storage because memory costs are rising 2, 1.

These chips may shift the fight for budget smartphone buyers

• Features such as faster app launches and less screen stutter give brands including Xiaomi and OPPO more ways to stand out without leaning on pricier hardware 3.
• The Snapdragon 4 Gen 5 also brings 90 frames per second gaming and Dual SIM Dual Active 5G, which keeps both SIM cards on 5G at the same time. Those additions could sharpen the race for buyers as affordable options thin out 2.
• Larger phone makers may gain ground because they can pair richer chip features with stronger buying power. Smaller vendors face a harder time getting memory supply or taking on higher component bills 1.
• IDC says the math does not work for a US$150 smartphone when memory prices jump. These platforms could help brands stay competitive as prices move higher 1.