Smartphone makers are bracing for a major cost squeeze in 2026, and it’s being driven by one key problem: a worsening DRAM shortage. As memory prices surge, the Bill of Materials (BoM) for smartphones is projected to rise sharply—potentially up to 25 percent—putting even more pressure on brands that already struggle to make healthy profits in the Android ecosystem.
For smaller manufacturers, this couldn’t come at a worse time. The smartphone market has long been dominated by a handful of giants that capture most of the industry’s profits, leaving limited room for companies that can’t compete at massive scale. ASUS has never been a top-tier player in global smartphone shipments, and with margins already tight, the current memory crisis appears to have forced the company into a difficult but practical decision.
According to reports citing supply-chain and industry sources, ASUS has indicated to partners and related channels that it doesn’t plan to launch any new ROG Phone or Zenfone models in 2026. While rumors about ASUS exiting the smartphone business have surfaced in the past—most notably around 2023—the company previously pushed back on those claims. This time, however, the situation appears more concrete, with 2026 currently shaping up to be a gap year for new ASUS smartphone releases.
The company isn’t abandoning existing users. ASUS is expected to continue providing after-sales support, and current devices are not said to be impacted. The issue is the cost of building competitive new phones in 2026. One striking example is memory pricing: a single 12GB LPDDR5X RAM chip is now reportedly around $70, a steep jump from the earlier $25–$29 range many manufacturers were used to paying. When you multiply that across production volumes—and combine it with other rising component costs—the economics become brutal.
On top of memory inflation, flagship processors are also expected to become more expensive, particularly higher-tier variants. For a company like ASUS, which typically positions ROG Phone models as performance leaders packed with premium parts, the overall build cost climbs quickly. Without the shipment scale of larger rivals, ASUS would likely have to raise prices significantly to maintain margins.
But charging more is easier said than done. The smartphone market is crowded, and buyers have plenty of alternatives across Apple, Samsung, Xiaomi, and other major brands. Those larger companies benefit from supply-chain leverage, broader distribution, and marketing reach that smaller brands can’t easily match. That makes it difficult for ASUS to pass higher component costs onto consumers without losing demand—especially when competitors can often price more aggressively.
ASUS has already announced pricing adjustments for certain product combinations beginning January 5, reflecting the broader cost pressures affecting the tech industry. There was also chatter that ASUS might move into the DRAM business as a way to cushion supply issues, but those claims have reportedly been denied. Adding to the challenge, memory suppliers are said to be prioritizing shipments for selected customers, and ASUS is reportedly not among those receiving preferred access—another factor that can disrupt planning for new device launches.
For now, the takeaway is clear: the DRAM shortage and rising component prices are reshaping the smartphone landscape, and ASUS appears to be stepping back from launching new ROG Phone and Zenfone models in 2026 rather than fighting an increasingly expensive battle for slim returns. Existing devices and support should remain in place, but fans waiting for next-generation ASUS phones may have to wait longer than expected.
