Why phones may become significantly more expensive in 2026

Smartphone on a display in a store. Photo: Unsplash

Due to a shortage of DRAM and a sharp rise in prices for key components, smartphones may become significantly more expensive in 2026. To keep costs down, manufacturers are considering compromises, such as returning to 4 GB of RAM in budget models.

This information comes from wccftech.

How will the cost of smartphones change in 2026?

According to estimates, the total cost of smartphone components may increase by about 25% in 2026 due to the DRAM crisis. Against this backdrop, not only is RAM becoming more expensive, but mobile LPDDR memory has also risen in price by more than 70%, and the cost of NAND storage has increased by 100%. These price hikes create additional pressure ahead of the release of devices with 2nm chipsets, which several companies plan to introduce later this year.

The DRAM shortage affects virtually all market players. Samsung's co-CEO previously commented that no company will be able to avoid the crisis. According to reports, even Apple was forced to take tougher action, allegedly sending its executives on extended business trips overseas to negotiate supplies with Samsung and SK Hynix.

According to data from Omdia shared by Ice Universe, smartphone manufacturers will have to factor a 70% premium into DRAM prices and a 100% premium into NAND prices. A separate analysis by TrendForce shows a change in cost structure. While memory previously accounted for 10-15% of smartphone production costs, it now accounts for 20%.

Processors are also becoming more expensive. Specifically, chipsets such as the Snapdragon 8 Elite Gen 6 Pro are expected to cost over $300 this year, while the Snapdragon 8 Elite Gen 5 is estimated at around $280 per unit. As a result, manufacturers will have to either cut back severely on specifications or pass the cost increases on to buyers, risking a drop in sales.

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