Smartphone manufacturers have been raising prices for new models in 2026, with some devices costing significantly more than their earlier versions while offering fewer upgrades. According to Counterpoint Research, the cost of memory components has quadrupled since the last quarter of 2025. This surge is largely due to increased demand from artificial intelligence data centers, which have taken up a large portion of production capacity, causing memory prices to skyrocket and these costs to be passed on to consumers.
The average price of smartphones on the market has risen by 15% in 2026, with older models like the Nothing Phone (4a) and previous iPhone versions also seeing price increases. New models have experienced even sharper hikes, with some costing about 25% more than the devices they replace. These price increases are further exacerbated by geopolitical tensions and currency fluctuations, which have driven up logistics and manufacturing costs.
The trend began in March 2026 with the release of the Pixel 10a from Google, which offered only minor improvements over its predecessor, the Pixel 9a, without a price increase. However, this was followed by more substantial price hikes, such as the Motorola Razr 70, which saw a 10% increase despite only minor upgrades in performance and photography. The situation worsened with the launch of the Redmi Note 17 5G, priced at 350 euros—16.7% higher than the previous model—despite featuring a less powerful processor and lower-quality camera sensors. Similarly, the Samsung Galaxy A18 4G was priced 80 euros higher than its predecessor, a nearly 40% increase, despite only modest improvements and a decline in screen protection.
Despite these challenges, the high-end smartphone market continues to show innovation. Oppo is set to release the Find X10 Pro Max, which will be the first smartphone with three 200-megapixel rear camera sensors. Apple has also raised the price of its iPhone 18 Pro by 150 euros, while Android manufacturers are also pushing the boundaries of high-end models.
According to IDC, global smartphone shipments are expected to drop by 16.7% in 2026, marking the worst year for the industry. At the same time, the average price of a smartphone is expected to rise by 27.6%, reaching 581 dollars (about 505 euros). Memory prices are projected to remain high at least until 2028.
Many analysts believe that the era of affordable smartphones is coming to an end. Consumers are advised to extend the life of their current devices or consider models from previous generations, like the Redmi Note 15, which are significantly cheaper and still offer strong performance. Additionally, consumers should be mindful of the release date of a smartphone, as update policies from manufacturers usually start from the launch date, not the purchase date.
Smartphone Prices Surge Amid Memory Shortages and Supply Chain Pressures
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