Driven by continuously rising mobile DRAM contract prices, reballed parts are rapidly gaining traction in entry-level smartphones thanks to their cost advantage, and their share is expected to expand significantly next year. However, inconsistent quality may lead to higher after-sales costs and risks to brand image. Moreover, with only a limited impact on overall bit demand, reballed parts are unlikely to reverse the upward trend in DRAM contract prices and can only provide a short-term buffer for low-margin models.

Key Highlights

• Cost pressure drives adoption: As mobile DRAM contract prices keep rising, reballed parts have become a cost-saving option for entry-level and low-end smartphones, and their share of devices is expected to expand significantly next year.
• Specs and price segments: Low-density LPDDR currently dominates, used mainly in price-sensitive entry-level models. If suppliers keep raising prices, adoption may spread to higher price segments.
• Wide price dispersion: Diverse sources and uneven quality require suppliers to screen and grade parts, resulting in a wide range of actual transaction prices.
• Quality risks: Reballed parts can effectively lower BOM costs in the short term, but questionable quality stability may raise after-sales warranty costs and damage brand image.
• Limited market impact: Their effect on overall smartphone LPDRAM bit consumption is limited. They are unlikely to reverse the upward trend in DRAM contract prices and can only provide a short-term buffer for low-margin models.

Table of Contents

1. Key Point
2. Market Update
   • Memory’s Share in BOM Costs for Entry-Level Smartphones

<Total Pages: 3>