Price hike is coming: Why phone prices will be higher in 2026
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Why are phones getting more expensive?
Smartphones have become an indispensable part of everyday life in the last decade – but in 2026, prices will jump more than ever before. The main reason is no longer just camera advancements or larger storage, but a global memory crisis driven by artificial intelligence (AI).
1. Artificial Intelligence and Data Centers Devour Memory
In the last two years, companies such as Meta, Google, Microsoft, and Amazon have significantly increased investments in AI data centers. These centers require enormous amounts of memory (DRAM, NAND, HBM), which has led to a redirection of production – from consumer devices to high-performance AI servers.
Key data:
- Prices for DRAM and NAND memory increased by 15–30% in 2025 (IDC, Counterpoint).
- Manufacturers (Samsung, Micron, SK Hynix) prioritize supply for AI, while the consumer segment is sidelined.
- Micron has even announced a complete withdrawal from consumer memory due to excessive demand from the AI industry.
2. What does this mean for phones, tablets, and watches?
Costs and consequences for manufacturers
- Prices for manufacturers: Material costs for phones increased by 8–15% in 2025 (up to 30% for the cheapest models).
- Manufacturer strategies: Big players like Apple and Samsung are protected by long-term contracts, but even they won't be able to hold prices back for long. Smaller and "budget" manufacturers (Xiaomi, Realme, TCL, Oppo, Honor) will be forced to raise prices or lower specifications (less RAM, worse cameras, older processors).
- Reduced supply: Some will even postpone new model releases or focus on more expensive devices with higher margins.
Consequences for buyers
- The average selling price of a smartphone will rise to $465 in 2026 (previously $430).
- Cheaper Android phones, where margins are already minimal, will be most affected.
- Buyers will notice fewer choices, slower price drops for older models, and more "recycled" components in new phones.
3. Detailed analysis – numbers, trends, and forecasts
Memory shortage: How did this happen?
AI – the biggest "silicon devourer"
- AI servers require up to 10x more memory than conventional servers.
- Manufacturers have redirected production to HBM and DDR5 for AI, reducing supplies for phones and PCs.
- Every chip that goes into an Nvidia AI server is one less chip for your phone.
What are the forecasts for 2026?
- Counterpoint Research: The average price of phones will increase by 6.9% (previous forecast was 3.6%).
- IDC: In a pessimistic scenario, prices could increase by up to 8%, and global phone sales could fall by 2–5%.
- The biggest price jump will be for models under €200 – here, memory costs already account for 20–30% of the device's price!
What does this mean for specifications?
- Expect stagnation in RAM (Pro models will remain at 12 GB, not 16 GB).
- Fewer upgrades to cameras, screens, and audio modules.
- More combining of older components in new models.
4. Will the price increase last?
Experts predict that the crisis will be most severe in the first half of 2026, after which the situation should begin to stabilize as supply chains adapt and investments in production yield results. However, it is clear: the era of cheap and abundant phones is (at least temporarily) over.
5. What can you do as a buyer? Practical advice
When to buy a new phone?
- If you're thinking of upgrading, don't delay too long – prices will be highest in the first half of 2026.
- Monitor promotions and stock, as older models will sell out faster.
- Consider financing or installment purchases if you're aiming for a higher-end device.
How to choose wisely and for the long term?
- Choose a phone with enough RAM and storage – upgrades will be slower in the coming years.
- Protect your device (case, screen protector, service) so it serves you longer. Check out our offer of screen protectors and cases (link title: Screen protectors and cases – protection for long-term use).
- Regularly update your software – security vulnerabilities and sluggishness are the biggest problems with older phones.
- Consider refurbished devices – they often offer an excellent price-to-quality ratio.
How to extend the lifespan of an existing device?
- Use original chargers and power banks. Read more: All about power banks – why you need them and how to choose the right one.
- Regularly clean your phone and use cable organizers to prevent damage to connectors.
- For more tips, read the blog: How to extend the battery life of your phone.
6. What's happening with other devices (tablets, watches, PCs)?
- Tablets and smartwatches: Expect price increases here too, as they use the same types of memory as phones.
- Laptops and PCs: A shortage of RAM and SSDs means higher prices and fewer upgrades. Manufacturers will prioritize "AI PCs" where margins are higher.
- Gaming segment: Smaller manufacturers and DIY builders will have the hardest time accessing components.
7. How will manufacturers and retailers react?
- Less choice, more "premium" devices: Focus on more expensive models with higher margins.
- More old components in new devices: Re-use of proven modules, fewer jumps in specifications.
- Marketing "AI features": Manufacturers will try to justify higher prices with advanced AI features (better camera, smart battery management, personalization).
8. What about Slovenia and the local market?
- Prices will follow global trends, especially for brands we import (Samsung, Xiaomi, Apple, Realme …).
- Fewer promotions and discounts – retailers will be more cautious with price reductions, as inventories are more expensive.
- More demand for refurbished and used devices.
9. Forecast for 2027 and beyond
Analysts expect the situation to stabilize by the end of 2026, when new investments in production yield results and the growth of AI infrastructure slows down. However, the era of "cheap phones" is (at least temporarily) coming to an end.
Conclusion: 2026 – a year of more expensive devices, but also opportunities for smart choices
Price increases are a reality, but with good information and smart purchasing, you can still choose a phone or tablet that will serve you for a long time. Follow our blog for current tips and offers, check out the best selection of phones and accessories and don't forget to protect your device!
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