The price of your smartphone could increase in 2026. And the AI will thank you for it.
According to a December 2025 report from International Data Corporation (IDC), a global market intelligence company, the production of random access memory (RAM) used to store data in devices such as computers and phones is being reallocated to support AI data centers rather than being built into phones and PCs.
Just as smartphones run faster with more memory, so do AI data centers. As more businesses rely on AI tools, reliable processing power becomes more important and RAM usage increases.
IDC expects dynamic random access memory (DRAM) supply growth in 2026 to be 16% year over year, below historical norms.
The search for affordable RAM is becoming increasingly difficult for smartphone manufacturers like Apple, Google, and Samsung, which can drive up costs and impact the prices they charge consumers.
“In the case of a future memory crisis, this will be a huge blow to the market,” Nabila Popal, senior research director at IDC, told CNET in December. “Those vendors will have little choice but to pass the increased costs on to consumers.”
Market analysis firm Counterpoint also predicts a weak year for all mobile phone manufacturers. The company predicts that global smartphone shipments will decline by 2.1% in 2026.
According to the company's research, memory prices could rise by 40% by the second quarter of 2026, as a device's memory can account for 10% to 20% of the total bill of materials.
Big manufacturers with a wider range of products should fare better than others on price, but the low-end market is likely to be hit the hardest, said Yang Wang, senior analyst at Counterpoint.
“Apple and Samsung are in the best position to survive the next few quarters,” Wang said. “But it's going to be tough for other companies that don't have as much control over their market share and margins.
Still, Counterpoint predicts average sales prices will rise 6.9%. Those looking to buy the base model of the iPhone 17 Max could end up paying nearly $1,281, which is higher than the $1,199 price announced in 2025.
