Smartphone prices are rising worldwide as a shortage of memory chips becomes a genuine theme and tightens supply across the industry. The main driver is growing demand from AI data centers, which are using chips that were once made for phones and other consumer devices. As a result, smartphone makers are facing higher production costs and are starting to pass some of that pressure to buyers.
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Research firms report that memory now accounts for more than 20% of a smartphone’s total build cost, up from about 10%-15% in prior years. At the same time, companies have little room to reduce memory use, since new AI features require more processing power and storage.
According to Omdia, mobile DRAM prices have risen more than 70% since early 2025, while NAND flash prices have nearly doubled. As a result of these increases, smartphone prices have already risen by 10%-25% in several global markets. Meanwhile, cost pressures are hitting lower-priced devices the hardest, since memory accounts for a larger share of their total cost. Research firm Counterpoint now expects global smartphone shipments to decline by about 2.1% in 2026, reversing earlier forecasts of stable growth.
What This Means for Major Phone Makers
The timing of the shortage is difficult for upcoming launches from major brands. Samsung Electronics (SSNLF) is expected to raise prices on its Galaxy S26 lineup due to higher component costs. Apple (AAPL) is also likely to adjust pricing for the next iPhone generation later this year. In addition, Chinese brands such as Xiaomi (XIACF) and Vivo are expected to follow similar pricing moves as memory costs stay elevated.
Looking ahead, analysts do not expect quick relief. AI data center spending remains strong, and memory makers continue to focus on higher-margin products for servers. As AI features become standard on smartphones, memory demand is likely to remain high even as overall phone sales slow.
We used TipRanks’ Comparison Tool to assemble all three phone makers to gain an in-depth view of each stock and the broader smartphone industry.
