Your smartphone may become more expensive in 2026 due to increasing demand for memory by AI data centers. Analysts warn that this shift could impact consumers worldwide.
According to a December 2025 report from International Data Corporation (IDC), the manufacturing of RAM (Random Access Memory) is being redirected to AI applications. Memory that would normally go to smartphones and computers is now prioritized for AI, driving costs up for device makers.
“As AI usage grows, the demand for reliable processing power increases, affecting memory allocation for smartphones,” IDC said. The report predicts DRAM (Dynamic Random Access Memory) supply growth of just 16% in 2026, below historical norms.
This shortage could force major manufacturers like Apple, Samsung, and Google to increase prices for their devices. IDC senior research director Nabila Popal told CNET that rising RAM costs are likely to be passed on to consumers, directly affecting smartphone prices.
Counterpoint, a global market analysis firm, projects a 2.1% decline in global smartphone shipments next year. They also forecast RAM prices to rise by up to 40% in the second half of 2026. Analysts note that higher-end brands like Apple and Samsung may better handle these challenges, while smaller companies could struggle to balance costs and market share.
Counterpoint data indicates that average selling prices for smartphones could increase by 6.9%. For example, the base model iPhone 17 Max may cost around $1,281, up from $1,199 in 2025. This highlights a clear upward trend in smartphone prices for the coming year.
Experts advise consumers to anticipate higher costs when upgrading or purchasing new smartphones in 2026. Rising memory costs, driven by AI growth, will likely affect both premium and mid-range devices, changing the pricing landscape for buyers worldwide.
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As AI continues to dominate memory demand, the smartphone market is expected to adjust, with price increases reflecting higher production costs and ongoing technological trends.
