Your Next Smartphone Will Cost a Lot More – Here's Why

As the memory chip shortage continues to unfold, smartphone and PC prices are likely to rise in 2026 as the global shortage begins to affect consumer devices. The shortage is tied to rapid growth in AI data centers, which are absorbing a large share of the memory supply that was once used for phones and laptops. As a result, device makers are facing higher costs for essential components such as storage and memory, which is now forcing difficult pricing decisions.Claim 70% Off TipRanks PremiumUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential Nothing founder and CEO Carl Pei warned this week that the era of low-priced smartphones is ending. In a post on X titled "Why Your Next Smartphone Will Cost More," Pei said memory costs have already tripled in some cases. He explained that brands are now left with a simple choice: either raise prices or reduce device specs. According to Pei, price increases of 30% or more may be required on some models to keep current features. He also said Nothing will inevitably raise prices across its phone lineup, with the biggest impact expected on devices launching in early 2026 that use UFS 3.1 storage. Pressure Spreads Across the Device Market Meanwhile, the pressure is spreading across the wider device market. Samsung Electronics (SSNLF) CEO TM Roh said at CES 2026 that the company is facing one of the harshest memory pricing environments in years and that phone price changes may be needed. Samsung marketing head Wonjin Lee also said the company is reviewing possible repricing to reflect the new cost structure. At the same time, PC makers are signaling similar moves. Dell Technologies (DELL) has warned customers of price increases of 15%-20%, while HP (HPQ) CEO Enrique Lores said the second half of 2026 could be especially difficult for pricing. Lenovo Group Limited (LNVGY) has already told customers that existing price quotes expired at the start of 2026 due to memory shortages and rising AI-related demands. Looking at the broader impact, International Data Corporation estimates PC prices could rise by 4%-8%, while smartphone prices may increase by 3%-8%, depending on how tight supply becomes. In a weaker demand scenario, the firm expects global device shipments to fall by nearly 9%. At the same time, TrendForce said smartphone production is now expected to decline 7% year over year in 2026, compared with an earlier forecast of a much smaller drop. IDC device research head Tom Mainelli said the shortage could hit smaller brands the hardest, adding that large vendors are likely to gain share while some regional players may struggle to stay in the market. We used TipRanks' Comparison Tool to align all stocks mentioned in the text with other smartphone makers and chip manufacturers, which are also affected by the current landscape.