Smartphone prices are expected to increase in 2026 as the rapid expansion of artificial intelligence shifts global memory production away from consumer devices and toward AI data centres, according to industry analysts.
A December 2025 report by global market intelligence firm International Data Corporation (IDC) said manufacturers of Random Access Memory (RAM) are increasingly prioritising AI infrastructure over smartphones and personal computers. This redirection of supply is tightening availability for consumer electronics and pushing up costs for device makers.
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Just as smartphones run more efficiently with higher memory capacity, AI data centres rely heavily on large volumes of RAM to process massive workloads. As companies accelerate adoption of AI tools, demand for memory has surged, placing pressure on supply chains.
IDC forecasts that DRAM (Dynamic Random Access Memory) supply growth in 2026 will fall below historical averages, rising just 16% year-on-year. The constrained growth is expected to drive up prices for smartphone manufacturers such as Apple, Google and Samsung.
“In the case of the upcoming memory crunch, vendors will have almost no choice but to pass the increased cost to consumers,” IDC senior research director Nabila Popal told CNET in December.
Market research firm Counterpoint has also warned of a slowdown in the smartphone industry next year, projecting global shipments to decline by 2.1% in 2026. The firm estimates RAM prices could rise by as much as 40% during the second half of the year.
According to Counterpoint senior analyst Yang Wang, larger manufacturers with diversified product portfolios are better positioned to absorb cost pressures. In contrast, lower-end smartphone markets are likely to face the sharpest impact.
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Apple and Samsung are expected to weather the challenges more effectively due to their pricing power and scale. Smaller manufacturers, however, may struggle to balance profitability with market share.
Counterpoint data suggests average smartphone selling prices could rise by nearly 7%, potentially pushing the base model iPhone 17 Max to around $1,281 — up from $1,199 in 2025 — underscoring the upward pressure on consumer costs.