Industry analysts are indeed warning of a “memory crunch” that could push smartphone prices higher throughout 2026.
Major memory manufacturers (like Samsung, SK Hynix, and Micron) are diverting their production lines away from standard consumer RAM toward high-margin High Bandwidth Memory (HBM) and specialized Low Power Double Data Rate 5X (LPDDR5X) needed for AI data centers. This is a classic supply-and-demand issue triggered by the AI boom.
While RAM is getting more expensive, new “AI Phones” actually require more of it to run local models.
Manufacturers like Xiaomi, Oppo and Realme are expected to feel the sharpest pressure because their business models rely on thin profit margins that cannot absorb a 40% surge in component costs, while Apple and Samsung are better insulated because they often secure long-term supply contracts 12–24 months in advance, though even they may “freeze” RAM upgrades (staying at 12GB for another year) to keep prices stable.
IDC (International Data Corporation) projects that the average selling price (ASP) for smartphones could hit a record $511 in the coming months, up from $440 last year.
While the market’s total value may reach a record $579 billion, the higher prices are expected to cause global shipments to drop by approximately 2.1% as consumers hold onto their older devices longer.
