Smartphone prices are expected to rise in 2026 due to increasing demand for AI-related memory, according to a December 2025 report by International Data Corporation (IDC). The manufacturing of Random Access Memory (RAM), essential for storing data in devices like smartphones and computers, is being redirected to support AI data centers. As AI systems require more RAM to operate efficiently, less memory is available for consumer electronics, driving up costs.
IDC predicts that DRAM (Dynamic Random Access Memory) supply growth will remain below historical norms, reaching only 16% year-on-year in 2026. This tightening of memory availability is expected to increase manufacturing costs for smartphone makers including Apple, Google, and Samsung. IDC senior research director Nabila Popal explained that vendors will likely have no choice but to pass these higher costs on to consumers.
Market analysis firm Counterpoint forecasts a 2.1% decline in global smartphone shipments in 2026, signaling a slower year for phone manufacturers. RAM prices could rise by as much as 40% in the second half of the year, putting additional pressure on lower-end smartphone markets. Larger manufacturers with a diverse product range are expected to absorb the cost more effectively, while budget devices may see the steepest price increases.
