For years, smartphone buyers have had it pretty good. Even budget phones now offer fast processors, high-refresh-rate displays, and cameras that would’ve seemed flagship-worthy just a few years ago. But that trend may be about to slow down, and AI is playing a big role.
Andy Boxall / Digital Trends
According to a new report from Omdia, global shipments of smartphones priced below $400 are expected to decline by more than 22% in 2026, largely because the cost of DRAM and NAND memory continues to rise. As AI features demand more memory across the industry, manufacturers are finding it increasingly difficult to build capable budget phones without sacrificing their already razor-thin margins.
Why has memory suddenly become so expensive
Memory has always been one of the highest costs inside a smartphone, but Omdia says it’s becoming an even bigger burden. In the first quarter of 2026, memory alone accounted for nearly 60% of the bill of materials in smartphones priced below $400, rising to more than 64% for phones costing under $99. That’s left manufacturers with very little room to absorb further price increases.
Andy Boxall / Digital Trends
Brands have already tried trimming costs elsewhere by using cheaper display panels, camera sensors, and radio components, but Omdia says low-end smartphones are already so tightly optimized that there simply isn’t much left to cut. As a result, companies like Transsion, OPPO, vivo, Honor, and Xiaomi are increasingly being forced to either raise prices or reduce specifications just to protect their margins.
Premium phones aren’t facing the same problem
Interestingly, Omdia says this pressure is mostly limited to the budget segment. While shipments of phones under $400 are forecast to fall by more than 22%, smartphones priced above $400 are expected to grow by 5.7% this year. Premium devices simply offer manufacturers far more flexibility to offset higher memory costs by tweaking displays, cameras, or even using older chipsets where it makes sense.
The funny thing is that AI was supposed to make smartphones more capable. Instead, it may also make them more expensive, or at least make truly affordable phones much harder to build. If Omdia’s forecast proves accurate, the next generation of budget smartphones may end up offering fewer upgrades than we’re used to, or disappear altogether as brands shift their focus toward more profitable devices.
More than $18.4 Million Available to Expand HealthySteps, an Early Childhood Mental Health Initiative that Screened 108,000 New Yorkers for Maternal Depression in 2025
Office of Mental Health Awards $350,000 in ‘Collaborative Care’ Grants to Help OBGYN and Family Medicine Practices Provide Behavioral Health Support to Patients
The New York State Office of Mental Health recently announced the availability of more than $18.4 million to expand HealthySteps, a successful early childhood mental health initiative that provides tens of thousands of critical depression screenings for new mothers annually. The agency also announced $350,000 in awards through the Collaborative Care program to help OBGYN and family medicine practices provide behavioral health support to their patients.
“It is critical that we focus on maternal mental health and develop the preventative services and supports for families in our state that address the long-standing inequities in care,” Office of Mental Health Commissioner Dr. Ann Sullivan said. “Initiatives like HealthySteps, Collaborative Care, Project TEACH and others are providing often life-saving screenings that are also connecting New Yorkers to both prenatal and postpartum supports. Under Governor Kathy Hochul’s leadership, we are increasing prevention services to improve outcomes and eliminating disparities in care.”
“I am grateful to Governor Hochul for her leadership in advancing maternal mental health initiatives in New York State that expand access to critical screenings and services,” Health Commissioner Dr. James McDonald said. “In recognition of Maternal Mental Health Awareness Week, we are reminded that every mother deserves compassion, support, and quality care. We remain committed to ensuring that all mothers feel supported, heard, and empowered.”
The state Office of Mental Health made available more than $18.4 million to continue expanding HealthySteps, an innovative program integrating behavioral health professionals with pediatric practices to provide early childhood mental and physical health care. The additional funding will provide 38 new awards to the 152 sites now funded, increasing statewide capacity of the program by about 25 percent once all are fully implemented.
HealthySteps pairs behavioral health specialists with pediatricians, who are often the first point-of-contact new caregivers have with the health care system. These specialists then serve as part of the primary care team during well visits, screening children and parents for a variety of concerns including behavioral health, developmental concerns and social determinants of health and family needs and then linking them to supports.
In 2025 alone, HealthySteps sites completed more than 108,000 screenings for perinatal depression, identifying cases and connecting parents to support when needed. Altogether, these sites conducted more than 500,000 screenings, helping to track food insecurity, housing instability, substance misuse, tobacco use, transportation, utility, and interpersonal safety.
In addition to the funding availability, OMH also awarded seven $50,000 one-time Collaborative Care grants to help OBGYN and family medicine practices implement evidence-based integrated healthcare for their patients and decrease racial disparities. Award recipients by region include:
Hudson Valley
New York City
Jamaica Hospital in Queens
Montefiore Medical Center in the Bronx
William F. Ryan Community Health Center, Inc., in Manhattan
Western New York
Jericho Road Ministries, Inc., in Buffalo
Neighborhood Health Center of WNY in Buffalo
Niagara Falls Memorial Medical Center in Niagara Falls
This funding will expand the psychiatric collaborative care model at these practices so they can increase perinatal depression and anxiety screenings and integrated treatment — a recommendation included in the state’s first-ever maternal mental health report. Directed by Governor Hochul and released by OMH in November, this report detailed the challenges pregnant and postpartum individuals are facing and made recommendations for improvements statewide.
Previously, Governor Hochul secured a $2.9 million increase to expand Project TEACH, an initiative that assists maternal health providers with screening and treatment of maternal depression and related mood and anxiety disorders during pregnancy and the postpartum period within their scope of practice. Adopted as part of the FY 2026 State Budget, the expansion has allowed a wider range of front-line practitioners – including doulas, midwives, therapists, WIC staff, home visiting nurses, lactation consultants, caseworkers and others working directly with the perinatal population – to obtain professional training and support in assessment for consultations with a reproductive psychiatrist or psychologist, and accessing resources.
Every year, an estimated 500,000 – about one in five – mothers in the United States experience perinatal mood and anxiety disorders during pregnancy or in the first year postpartum. About 75 percent of these individuals are not diagnosed or treated, which can lead to high-risk pregnancies, poor childhood cognitive development due to substance use, self-harm, or suicide.
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