Overview
Smartphone specifications are advancing rapidly due to two main factors. On-device generative AI is increasing baseline hardware requirements, while an AI-driven memory shortage is raising component costs. This trend most affects budget smartphones, where memory represents a larger share of total costs, making it harder for OEMs to improve specifications without reducing affordability.
Understanding the status of each specification and feature, along with the markets, brands, and price tiers driving change, is essential for effective product planning, sourcing, competitive positioning, and investment decisions.
