Dixon Technologies Ltd. has admitted that FY26 shipments may slightly miss guidance as demand levels continue to be impacted in the wake of rising RAM prices.
This is according to the management after meeting with Axis Capital, where the company admitted that rising memory prices are weighing on demand for budget phones, thus impacting volumes, particularly from Ismartu and Xiaomi.
Dixon Tech management went on to add that FY26 shipments guidance could see a slight miss, while the softness may continue through the first half of FY27.
The management had hinted at rising memory prices being a concern during the Q3FY26 conference call in January. “One important external headwind is a sharp increase in memory prices globally driven by AI and data centre demand, reallocating the memory capacity away from traditional consumer devices," said Atul Lall, Vice Chairman and Managing Director of Dixon Tech.
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“For smartphones and PCs, memory has moved from being a relatively small line item to one of the most sensitive parts of the bill of materials, especially for the lower-priced devices," he added.
This goes in line with a Jefferies note recently that pointed out that predicted Dixon Tech's global smartphone shipment volumes could fall 31% in calendar year 2026.
Jefferies noted that DRAM prices sequentially rose 70% in the first quarter of CY26 and could rise as much as 50% in the second quarter. This doesn't bode well for Dixon Tech as DRAM constitute 15% of the company's raw material cost.
The recent admission by the management of Dixon Tech, therefore, goes in line with industry trends, as the EMS space braces itself for tough times ahead, in the wake of global volatility and hardware price surge.
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