Smartphone Prices Are About to Change: What You Need to Know
The smartphone market defied expectations in 2025, posting a 1.9% growth despite global economic headwinds. Apple and Samsung led the charge, capturing 39% of global sales – a rise from 37% the previous year. But don’t celebrate just yet. A looming RAM shortage threatens to upend this positive trend, potentially leading to higher prices for consumers in 2026.
The RAM Shortage: A Perfect Storm for Price Hikes
The same RAM shortage that’s been impacting the PC market is now squarely targeting smartphones. This isn’t just about a minor inconvenience; it’s a significant supply chain disruption that industry analysts predict will cause a market contraction. Ryan Reith, IDC’s group vice president for worldwide client devices, calls it “unprecedented.”
What does this mean for you? Simply put, your next phone is likely to cost more. While tech giants like Apple and Samsung have the leverage to negotiate better supply rates, the increased costs will inevitably trickle down to consumers, particularly those seeking more affordable devices.
How Manufacturers Might Soften the Blow
History suggests phone makers aren’t likely to simply pass on the full cost increase to consumers. Remember the tariff disruptions of recent years? Companies absorbed some of the costs and employed creative strategies to mitigate the impact. We’re likely to see a similar approach this time around.
Avi Greengart, president and lead analyst at Techsponential, predicts manufacturers will explore several tactics. One is adjusting phone specifications. Instead of rushing to adopt the latest, most expensive display technology, companies might stick with proven, cost-effective options. Another is offering configurations with less storage in the base models.
“You’ll see base phone models without quite as much storage as you might have gotten in the past, with higher prices being passed along on the larger storage options,” Greengart explained to CNET. This is a subtle way to increase revenue without a dramatic price jump on the entry-level models.
Premium Phones: A Different Story
The super-premium segment – think foldable phones costing upwards of $2,000 – is expected to weather the storm more effectively. Manufacturers are more willing to raise prices or accept lower profit margins on these high-end devices, knowing their customer base is less price-sensitive. However, even this segment won’t be entirely immune to the rising costs.
The impact will be most keenly felt in the entry-level and mid-tier markets. These phones already operate on slim margins, leaving manufacturers with little room to absorb increased component costs. Expect to see price increases across the board, even for budget-friendly handsets.
What to Expect at CES and MWC 2026
While few phones have been announced with significant price hikes so far in 2026, all eyes are now on the upcoming Mobile World Congress (MWC) in late February. CES 2026 offered a glimpse of future technologies, but MWC is where we’ll likely see the first concrete announcements regarding pricing and specifications for the year’s flagship devices.
Industry watchers are anticipating a cautious approach from manufacturers. Expect incremental upgrades rather than revolutionary changes, as companies prioritize cost control and supply chain stability.
The smartphone market remains competitive, but rising component costs pose a significant challenge.
Beyond Price: What Else is Changing?
The RAM shortage isn’t the only factor shaping the future of smartphones. The industry is also grappling with evolving consumer behavior. People are holding onto their phones for longer periods, reducing the demand for frequent upgrades. This trend is forcing manufacturers to focus on innovation and features that truly justify a purchase.
Expect to see continued advancements in areas like artificial intelligence (AI), camera technology, and battery life. These are the features that will ultimately drive consumer demand and differentiate smartphones in a crowded market.
Frequently Asked Questions (FAQ)
Will all phones get more expensive?
Likely, yes. While premium phones may see smaller increases or manufacturers absorbing some costs, even budget-friendly phones are expected to become more expensive due to the RAM shortage.
How significant will the price increases be?
It’s difficult to say definitively. The extent of the price hikes will depend on the duration of the RAM shortage and the strategies manufacturers employ. Expect increases ranging from a few percentage points to potentially 10-15% on some models.
Should I wait to buy a new phone?
If your current phone is functioning adequately, it might be wise to wait and see how the market unfolds in the coming months. However, if your phone is nearing the end of its life, delaying a purchase could mean facing even higher prices later.
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