Advertisement
Why your next phone may cost more than you expect
10th September, 2026 11:57 AM
The next smartphone you buy could cost more than you had planned, as rising component prices and growing demand for artificial intelligence technology continue to put pressure on the global phone market.
Smartphone prices have been increasing across several major brands in 2026, with Apple, Google and Samsung among manufacturers that have introduced higher prices for some of their latest devices.
The trend comes as manufacturers face higher costs for memory and other components used in smartphones. The growing AI industry is also competing for the same semiconductor resources needed to produce consumer electronics.
AI boom is pushing up component costs
Behind the increasingly expensive smartphones is a global squeeze on memory chips.
AI data centres require large amounts of high-performance memory, encouraging chip manufacturers to prioritise components used for AI systems because of their higher demand and profitability.
This has reduced the supply available for consumer electronics, including smartphones.
The shortage has already affected phone manufacturers, with reports showing that memory prices have risen sharply in 2026. TrendForce said the cost of memory for a common 8GB RAM and 256GB storage smartphone configuration had nearly tripled year-on-year in the first quarter of 2026.
The pressure is not limited to premium smartphones. Counterpoint Research said low-end phones priced at $99 and below are losing ground as manufacturers face difficulties securing affordable memory supplies.
What higher prices could mean for buyers
For ordinary consumers, the impact could be felt when replacing an older device.
Instead of getting a newer phone every one or two years, buyers may increasingly choose to keep their existing devices for longer, particularly if newer models offer only modest improvements.
Some consumers could also shift towards refurbished or second-hand phones, while others may prioritise battery life, storage, software support and repairability when deciding whether a new device is worth the cost.
The situation is particularly relevant for price-sensitive markets, where even a relatively small increase can make a noticeable difference to household spending.
The smartphone upgrade cycle could change
The rising cost of phones could eventually change how consumers think about upgrading.
Rather than viewing every new model as a reason to replace an existing device, buyers may increasingly look for phones that can remain useful for several years.
Analysts have warned that the memory shortage could continue putting pressure on consumer electronics prices, with new production capacity taking time to come online.
For consumers, that could mean the best smartphone purchase is no longer necessarily the newest one, but the device that offers enough performance and longevity to avoid another expensive upgrade soon.
