AI Boom Could Raise Smartphone Prices in 2026

Smartphones and other consumer devices may become more expensive in 2026, not because of new features, but due to rising memory costs driven by the rapid growth of artificial intelligence.

Manufacturers are prioritizing memory for AI data centers over consumer products, creating shortages for phones, tablets, and smartwatches. Industry analysts expect memory prices to increase 30% in late 2025 and an additional 20% early next year.

Major tech companies, including Meta, Microsoft, and Google, are expanding AI infrastructure, while memory producers such as Micron and Samsung are shifting focus to high-demand data center memory.

Analysts note that cheaper smartphones may experience the largest price hikes, with the average selling price for all smartphones projected to rise to $465 in 2026. While supply chain adjustments may stabilize costs later in the year, the current AI-driven memory crunch is reshaping the consumer electronics market in the near term.