Smartphone Makers Increase Use of Recycled Memory to Offset Rising Costs

Rising Adoption of Reballed Memory

The smartphone industry is seeing an increase in the use of reballed memory, which is memory salvaged from older devices. Currently, this recycled memory has a penetration rate of 3-4%, primarily in entry-level and budget smartphone models. TrendForce, a market intelligence firm, forecasts this figure to rise to 7-9% by 2027.

The Reballing Process

Reballing involves melting the solder balls on a used memory chip to remove it from an old device, then re-soldering it onto a new device. This process allows for the reuse of components that would otherwise be discarded, offering a cost-effective alternative to new memory chips.

Cost Management in Budget Smartphones

Manufacturers are adopting reballed memory to control production costs, especially in the budget smartphone segment where consumers are sensitive to price increases. Reballed 4GB LPDDR4X memory modules are common in 4G smartphones priced below CNY 1,299 (approximately $200). This strategy helps offset rising bill of materials (BOM) costs and keeps entry-level devices affordable.

Future Expansion Amidst Price Hikes

TrendForce anticipates further increases in DRAM prices in the first quarter of 2027. This pressure may lead to the expansion of recycled memory use beyond entry-level devices into more premium smartphones. What began as a cost-saving measure for budget models could become a broader strategy for managing expenses during prolonged periods of high memory prices.

Parallel Trends in PC Hardware

The rising cost of memory also influences PC enthusiasts and hardware hobbyists. For example, one hobbyist converted a $120 DDR5 SO-DIMM kit into a desktop memory kit valued at around $1,000 by reballing SK hynix DDR5-5600 SODIMM chips onto custom desktop DIMM PCBs, achieving DDR5-7800 speeds.