AI Memory Demand Drives Global Smartphone Price Hikes

Industry leaders and market analysts warn that smartphone prices will rise sharply in 2026 as artificial intelligence infrastructure competes for the same memory chips used in consumer electronics. Carl Pei, CEO of Nothing, stated that memory costs have already surged up to three times, predicting that some top-tier modules costing under $20 a year ago could exceed $100 by the end of 2026. Pei noted that manufacturers must choose between raising prices by 30% or more or downgrading hardware specifications, signaling an end to the industry's hardware specs race.

Other major players are reporting similar pressures. Samsung President Won-Jin Lee indicated that worsening chip shortages may force price increases, while Counterpoint Research described the memory market as being in a hyper-bull phase with prices potentially climbing another 40% in the first half of the year. The impact is already visible in India, where smartphone prices rose between 3% and 21% in late 2025. Super Plastronics CEO Avneet Singh Marwah detailed a series of price hikes from November through February to compensate for supply shortages.

The price volatility is expected to hit budget segments hardest. Market analysts and the All India Mobile Retailers Association project a 10-12% drop in global shipment volumes for 2026, as the increased cost of NAND and DRAM memory makes entry-level devices less accessible to consumers.