Android smartphones may move backward: 90 Hz and a “waterdrop” notch instead of 120 Hz and punch-hole — because of the AI boom

The boom in artificial intelligence, which has driven up prices for DRAM and NAND Flash memory, has now reached smartphones. Well-known Chinese insider Digital Chat Station (DCS) reported on Weibo that manufacturers of Android devices in the budget and mid-range segments have begun testing simplified displays: 90 Hz refresh rates instead of 120 Hz, and a return to the old waterdrop (U-shaped) notch for the front camera instead of the cleaner punch-hole cutout.

What exactly is changing and why

Over the past 2–3 years, the budget and mid-range smartphone market has largely switched to 120 Hz displays (and sometimes even 144 Hz) along with modern screen designs — this became almost standard even in devices priced around 15–20 thousand rubles. Now some Chinese brands (Xiaomi, Realme, Tecno, Infinix, Vivo, and others) are experimenting with rolling back these features to cut costs.

The main reason is the sharp rise in memory prices. In inexpensive smartphones, RAM and internal storage can account for up to 30–40% of total manufacturing cost. When the prices of these components increased dramatically (due to demand from AI giants such as NVIDIA, Google, and OpenAI), manufacturers were forced to choose between two options:

• raise smartphone prices (risking losing buyers);
• or reduce other specifications to stay within the familiar price range.

Most companies chose the second option. The display is one of the most expensive components after memory and the processor, so it’s a natural place to look for savings.

What this could look like in practice

• 90 Hz instead of 120 Hz — scrolling will be slightly less smooth, especially noticeable in games and fast social media feeds.
• Return of the waterdrop notch instead of a punch-hole — the cutout takes more space, the design looks more dated, and bezels may grow slightly.
• Possible lower peak brightness or simplified display panels (fewer local dimming zones, weaker anti-glare coating).

At the same time, manufacturers will try to keep other specifications (camera, battery, charging speed) at the current level to remain competitive.

The global context of 2026

Analysts have already warned that 2026 could become one of the toughest years for the smartphone market in the past decade. Shipments may fall by 10–13%, the average device price could increase by 12–15%, and the budget segment (under $200) risks becoming unprofitable for many companies.

Apple and Samsung, with their high margins and premium positioning, are expected to suffer less. Chinese brands, on the other hand, will likely be forced to cut costs more aggressively.

For now, this information comes from tests and insider reports, but early signs are already visible in leaks and renders of upcoming models. If the trend is confirmed, spring–summer 2026 smartphone lineups (Redmi, Poco, Realme, Infinix, and others) may surprise users not only with new chips but also with a noticeable regression in display design.

In brief

Because of rising memory prices driven by the AI boom, Android smartphone manufacturers in the budget and mid-range segments are testing a rollback to older display technologies: 90 Hz instead of 120 Hz and waterdrop notches instead of punch-hole cameras. The goal is to avoid raising device prices. Insider Digital Chat Station warns that this is already happening in tests among Chinese brands. 2026 could be a difficult year for the market, so expect simplifications in lower-cost models.