Smartphone prices are expected to rise in 2026 as global memory supply increasingly shifts toward artificial intelligence (AI) data centers, reducing availability for consumer electronics such as smartphones and PCs.
According to market insights referenced in late 2025, manufacturers are reallocating production of Random Access Memory (RAM) — a key component in smartphones — to meet the fast-growing needs of AI infrastructure, which is now dominating memory consumption worldwide.
RAM plays a crucial role in both mobile devices and AI systems, enabling faster performance, multitasking, and data processing. With enterprises accelerating adoption of AI tools and cloud-based services, demand for high-capacity and reliable DRAM (Dynamic Random Access Memory) is surging. This surge is expected to tighten supply for smartphone vendors and drive up component costs heading into 2026.
Industry estimates indicate that DRAM supply growth may fall below historical averages next year, projected at just 16% year-on-year, creating further strain on availability. Analysts warn that smartphone makers — including leading brands such as Apple, Samsung, and Google — may face higher memory procurement costs, which could ultimately be passed on to consumers in the form of higher retail prices.
Market experts suggest that a potential “memory crunch” could significantly impact device pricing trends. With RAM costs forecast to climb and demand outpacing supply, smartphone vendors may have limited flexibility to absorb increased production expenses without adjusting pricing structures.
Global smartphone shipments are also expected to soften in 2026, with industry research projecting a 2.1% decline as market conditions tighten. Memory prices could rise by as much as 40% during the second half of the year, potentially putting additional pressure on budget smartphone segments and emerging markets.
Larger smartphone manufacturers with diversified product portfolios are likely to remain more resilient. Premium brands — particularly Apple and Samsung — are viewed as better positioned to navigate rising component costs due to stronger margins and financial stability. However, smaller and mid-tier companies may struggle to balance profitability and competitive pricing.
Research also points to a potential 6.9% increase in average selling prices (ASP) across the global smartphone market. Based on current projections, flagship devices launching in late 2026 — including upcoming iPhone and Android premium models — could see noticeable price hikes compared to previous-generation releases.
With AI technology reshaping memory allocation trends, 2026 may mark a challenging year for smartphone affordability as manufacturers adapt to supply constraints and rising production costs.