"Memory is getting more expensive because of the AI bubble/boom (pick which one you want/believe in). Memory makers like Samsung are deprioritizing memory production for phones, since the data center market for AI is where the money's at right now. According to Xiaomi President Lu Weibing, all of this means next year's smartphones will be even more expensive than this year's."
"I expect pressure to be much heavier next year than this year. Overall, consumers are likely to see a sizeable rise in product retail prices. Some of the pressure may have to be addressed through price hikes, but price increases alone won't be enough to digest it"
"So the relentless upward trend of smartphone pricing is not going to stop, reverse, or even slow in 2026. Every device will be getting more expensive, again - that is, of course, if Lu's predictions come true. We hope they won't, but look at where smartphone prices are today compared to a few years ago and you'll understand why we're not holding our breath."
Memory prices are rising due to AI-driven demand, creating upward cost pressure across device supply chains. Major memory manufacturers are shifting capacity toward data-center AI requirements and deprioritizing phone memory production, tightening smartphone memory supply. As a result, retail prices for smartphones are expected to increase next year, with some cost passed to consumers through price hikes while price increases alone will not fully absorb the added costs. The persistent upward trajectory of smartphone pricing is likely to continue into 2026, leaving consumers facing higher device prices compared with several years earlier. Market dynamics limit short-term relief.
Read at GSMArena.com
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