Memory chip shortages, driven by demand from AI data centers, are increasing prices of smartphones in 2026.
The 2026 smartphone market is facing a reckoning. According to IDC, supply constraints on DRAM and NAND chips are putting significant pressure on manufacturers. Counterpoint Research reports that RAM prices have nearly tripled compared to last year.
Memory chips account for 10-20% of a smartphone's total bill of materials, according to IDC. This cost increase is particularly brutal for budget and mid-range devices, which operate on razor-thin margins. As a result, phone manufacturers are being forced into a difficult corner: raising prices, cutting specifications, or doing both.
The Impact on Specific Models
The price hikes are easy to spot. The Google Pixel 10a now starts at $500. The Samsung Galaxy A57 launches at $550, a $50 increase over its predecessor. Some Motorola G-series models have seen price jumps of up to $100 on the official website.
For budget-conscious buyers, the report strongly suggests avoiding 2026 models in favor of their 2025 predecessors.
Recommendations: Why 2025 Models Are a Better Bet
Industry analysts are calling 2026 a "skip year" for upgrades, arguing that older models provide superior value.
- Google Pixel 10 (2025): Available for around $550, it offers more RAM, a telephoto camera, and wireless charging—features missing from the more expensive Pixel 10a.
- Samsung Galaxy S25 series: Analysts recommend these over the S26, citing minimal performance upgrades for the new generation.
- Apple's iPhone 17 series: While Apple has managed to maintain pricing relative to the iPhone 16, the iPhone 17e is singled out as a tougher value proposition. The standard iPhone 17 is considered a more viable option due to its value improvements.
Older flagship models from 2025 frequently offer similar or better specifications at heavily discounted prices.