# Rising Memory Costs Drive Global Shift Toward Recycled and Refurbished Hardware Manufacturers and enterprises are increasingly adopting circular IT strategies to combat soaring component prices. - **Source:** [Tom's Hardware](https://www.tomshardware.com) - **Published:** 2026-11-09 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/50f1dbfa-6dd8-4eaf-9fd7-46e0b4a1d45d ## Industry Adopts Reballed Memory Smartphone manufacturers are increasingly using reballed memory to manage rising production costs. This process involves salvaging memory chips from discarded devices by melting and re-soldering connections. Currently, this practice accounts for 3–4% of the market, primarily in budget smartphones priced below CNY 1,299, but it is expected to reach 7–9% by 2027. ## AI Demand Strains Supply Memory costs have quadrupled this year as manufacturers prioritize high-bandwidth memory for AI datacenter servers. This shift creates a supply squeeze for standard components, forcing smartphone makers and enterprises to seek alternatives. As DRAM prices are projected to rise further in early 2027, the pressure to adopt recycled components will likely intensify across sectors. ## Circular Economy Gains Traction Enterprises are keeping hardware longer due to economic uncertainty, fueling demand for refurbished IT equipment. Suppliers are now linking refresh cycles with value recovery from aging assets. Experts predict that by 2030, 35% of all hardware sold through channel partners will be reclaimed, driven by the economic logic of circular IT lifecycles and capital recovery. ## Verification Builds Market Trust Trust remains the primary barrier to widespread refurbished hardware adoption. Industry leaders are currently collaborating with vendors like HP, Lenovo, and Dell to establish standardized verification methodologies. Providing warranties of up to three years, similar to new product support, is proving essential in making secondhand equipment a viable option for risk-averse corporate buyers. ## Supply Chain Constraints Persist While demand for refurbished smartphones and PCs is growing, supply remains a significant challenge. Persuading customers to trade in old devices is difficult, limiting the availability of stock for refurbishment. Companies like XTENTEC are now financing residual values at the end of usage cycles to incentivize returns and ensure a steady flow of hardware. ## Technical Expertise and Innovation Reballing is a technically demanding process requiring specialized equipment to handle tiny BGA solder connections. Beyond industrial smartphone applications, hobbyists are also repurposing laptop memory for desktop use. One project successfully converted a $120 DDR5 SO-DIMM kit into high-speed desktop modules, demonstrating the extreme lengths taken to bypass current market pricing. ## Redefining Corporate Success Metrics Current corporate focus on quarterly sales and market share often discourages refurbishment initiatives. Industry advocates argue that companies should implement a specific market share figure for circularity to align business goals with sustainability. Integrating lifecycle services into initial purchasing decisions, rather than adding them years later, is seen as a necessary strategic evolution. ## Future Market Outlook What began as a cost-saving measure for entry-level devices is evolving into a broader strategy for managing expenses. As sustainability requirements in public and private tenders increase, the shift toward recycled components will likely expand into premium segments. The industry is moving toward a model where hardware longevity is prioritized over constant new sales. ## Sources covering this story - [www.theregister.com - Articles — Rising Memory Costs Drive Enterprise Demand for Refurbished Hardware](https://www.theregister.com/on-prem/2026/11/09/memory-crunch-makes-refurbished-kit-look-a-lot-less-secondhand/5307758) - [The Register — Rising Memory Costs Drive Enterprise Demand for Refurbished IT Hardware](https://www.theregister.com/on-prem/2026/11/09/memory-crunch-makes-refurbished-kit-look-a-lot-less-secondhand/5307758) - [Tom's Hardware — Smartphone Makers Turn to Recycled Memory to Combat Rising Costs](https://www.tomshardware.com/pc-components/dram/memory-shortage-spurs-smartphone-makers-to-melt-used-memory-off-old-devices-then-re-solder-it-onto-new-products-recycled-memory-to-keep-budget-phones-affordable-reballing-adoption-to-double-by-2027) - [TechSpot — Used Memory Chips Emerging in Budget Smartphones](https://www.techspot.com/news/114491-smartphone-makers-salvaging-memory-chips-used-devices-amid.html) --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._