A report from Counterpoint Research claims that several Chinese smartphone makers drastically lowered their production targets and looked for ways to cut costs in Q2 2026.
By Q3 2026, however, some of these manufacturers had increased their targets again. Apparently, they were able to secure recycled DRAM from old smartphones, computers, and even servers.
Like most recycled products, the chips are reportedly cleaned and properly tested before being reused. Some manufacturers are reportedly considering using these recycled chips only in budget models.
Despite the testing, using older chips can still carry risks, especially over the long term. Like other tech components, DRAM can degrade over time, potentially leading to slower performance and an increased risk of data errors.
According to Counterpoint Research, this appears to be a short-term fix. However, there is still no clear way out of the memory shortage, as chipmakers continue to prioritize high-margin chips for AI data centers, deprioritizing those intended for consumer tech products such as smartphones.