And the customers can wait for the new phone released next year. These are edge models - the average customer doesn’t need the latest frontier model. Just needs to be good enough for the features you promised.
Yes, each rom bit can be a transistor or even a diode with a decoder circuit. Simplest Dram cell is capacitor+transistor - and you need a clock, refresh circuit etc.
Someday, I imagine model weights could even be encoded as analog resistors (memristors or similar) for even greater density