Smartphone Prices Set to Jump 6.9% as AI Data Centers Devour Memory Chips

Your next smartphone upgrade is about to get pricier, and you can thank AI for that. Counterpoint Research now sees average smartphone prices climbing 6.9% year-over-year in 2026, almost double earlier estimates of 3.6%. The surge is being driven by AI data centers stockpiling key memory components, which is tightening supply and putting pressure on smartphone makers.

• Budget phones under $200 are taking the biggest hit, with component costs up 20% to 30%, while mid and high-end devices face 10% to 15% increases.
• Counterpoint warns memory prices could jump another 40% through Q2 2026, pushing material costs 8% to 15% higher and likely flowing straight to consumers.

RIP getting your worth: The shortage of DRAM chips used in both AI servers and smartphones could threaten to cut smartphone shipments by 2.1%. To cope, some manufacturers may downgrade cameras, displays, and audio or reuse older components. Counterpoint’s MS Hwang says AppleAAPL

and Samsung are “best positioned to weather the next few quarters,” while Chinese brands in lower price tiers face hard tradeoffs between market share and margins.