Smartphone prices set to rise in 2026 as AI dominates memory supply

Your smartphone’s price may increase in 2026, and you can thank AI for that.

According to a December 2025 report from the global market intelligence firm International Data Corporation (IDC), the manufacturing of Random Access Memory (RAM)—which is used to store data in devices like computers and smartphones—is being shifted to support AI data centers. Instead of being allocated to phones and PCs, resources are redirected to AI needs, contributing to rising smartphone prices.

Just as your smartphone operates more efficiently with additional memory, AI data centers also perform better with increased RAM. As more companies depend on AI tools, the demand for reliable processing power grows, resulting in higher usage of RAM.

IDC anticipates DRAM (Dynamic Random Access Memory) supply growth to be below historical norms in 2026 at just 16% year-on-year.

As the quest for affordable RAM becomes increasingly challenging for smartphone manufacturers like Apple, Google, and Samsung, their costs are likely to surge. This could affect the smartphone prices they charge consumers.

“In the case of the upcoming memory crisis, this is something that will hit the market hard. Those vendors will have almost no choice but to pass the increased cost to consumers,” IDC senior research director Nabila Popal told CNET in December, further impacting smartphone prices.

Global smartphone shipments are projected to decrease by 2.1% in 2026, according to market analysis firm Counterpoint. They expect a slower year for all phone manufacturers. According to the firm’s research, RAM prices could increase by 40% through the second half of the year.

Larger manufacturers with a wider range of products, in terms of price, should fare better than others, according to Counterpoint senior analyst Yang Wang. At the same time, lower-end markets will likely be hit the hardest.

According to Wang, Apple and Samsung are in the strongest position to handle the challenges of the upcoming quarters. However, other companies lacking the financial flexibility to balance market share against profit margins will face significant difficulties.

Counterpoint’s data indicates a potential 6.9% rise in average selling prices. This suggests that the base model iPhone 17 Max could eventually cost buyers around $1,281. That is an increase from the $1,199 price announced in 2025, highlighting the upward trend in smartphone prices.