A shortage of memory chips and other artificial intelligence-related (A.I.) processors is likely to cause prices for smartphones to rise 7% in 2026, according to Counterpoint Research.
The average selling price of smartphones worldwide could increase 6.9% year-over-year in 2026 as microchip shortages become more acute, said Counterpoint in a new analysis.
At the same time, global smartphone shipments could decline 2.1% in 2026 as consumer
demand weakens in the wake of higher prices.
The Counterpoint analysis says that microchip shortages and bottlenecks in the semiconductor supply chain are leading to higher prices for smartphone components.
A specific component called dynamic random-access memory, or DRAM, which is used in A.I. data centres is also critical for smartphones.
DRAM prices have surged this year as demand outstrips supply worldwide, notes Counterpoint.
In 2026, memory chip prices could rise another 40%, leading to significant price hikes at the consumer level as the average selling price of a smartphone drifts upward.
Counterpoint Research says that Apple (AAPL) and Samsung (SSNLF) are the smartphone makers best positioned to weather the cost pressures over the next few quarters.
However, some companies may downgrade the components in their smartphones such as the camera, display, and audio quality as they seek to keep price increases to a minimum.
Apple, which makes the bestselling iPhone, has seen its stock rise 12% this year to trade at $274.11 U.S. per share.
