Average smartphone price in 2026 to rise by $95 to $550

The smartphone market in 2026 is facing a notable price increase. According to a forecast by analytical firm IDC, the average cost of a single device will rise by $95, reaching the $550 mark.

Main reason — memory shortage

The main driver of the price increase has been an acute shortage of both RAM and storage memory. The massive artificial intelligence boom has led major tech giants to actively buy up all available DRAM and NAND chips for their data centers and AI accelerators. As a result, ordinary smartphone manufacturers have to compete for limited resources, which inevitably leads to higher production costs.

Currently, memory (RAM and storage) accounts for more than 60% of the cost of a modern smartphone.

Market consequences

According to IDC estimates, 200 million fewer smartphones will be sold in 2026 compared to 2025. The crisis will hit the budget segment particularly hard: there will be fewer devices available, and their specifications will be more modest.

Manufacturers are forced either to raise retail prices or to cut costs on other components, which negatively affects the user experience.

In brief

The average smartphone price in 2026 will rise by $95 to $550. The main reason is the global memory shortage caused by the AI boom. As a result, global smartphone sales could drop by 200 million units. The budget segment will be hit hardest. RAM and storage currently account for over 60% of a device's cost. IDC analysts warn that the situation will remain challenging in the coming years.