Syed Saif Ul Hassan 
Nov 18, 2025
An undated image of a person standing in a mobile store. — Canva
Smartphone prices are bracing for a sharp surge with 2026 approaching fast, reportedly owing to soaring memory chip costs, a trend that took place in 2025 as a result of the global AI boom.
Major manufacturers like Xiaomi, Oppo, and Vivo have reportedly dropped chip purchases to a substantial degree in the wake of suppliers like Samsung, Micron, and SK Hynix increasing memory prices by up to 50%, PhoneWorld reported, citing a report from an international news outlet.
The chip shortage-driven price hike is primarily driven by AI models and data centres competing for the same chips used in smartphones, often paying 30% more per chip. Subsequently, smartphone manufacturers are struggling to compete with these premium buyers.
The memory crisis intensified in October when Samsung ceased quoting prices for DDR5 chips, leading to a 25% price surge in just one week.
As of now, many smartphone makers have limited memory stock, compelling companies like Xiaomi, Oppo, and Vivo to freeze new orders due to unsustainable pricing.
With memory amounting to 30% of a smartphone's cost, a 40-50% rise in DRAM or NAND prices will directly affect device prices.
Analysts in the smartphone industry predicted mid-range phones will likely rise by $15-$30, while high-end models might see increases of $50-$70, meaning consumers will be paying higher prices for the same storage or receiving less storage for the same price.
If the purported chip shortage remains intact, this would lead to premium pricing across the board, particularly impacting mid-range devices and delaying launches or reducing features in upcoming models.
