Global AI boom may push up smartphone prices next year
Rising demand for memory chips from AI data centers is tightening supply for consumer electronics - a trend analysts say could make some smartphones more expensive in early 2026, Qazinform News Agency correspondent reports.
Analysts warn that smartphone makers may face higher production costs next year as memory chip prices continue to climb, driven by a surge in demand from companies expanding AI data centers.
Major technology firms, including Meta, Microsoft, and Google, have rapidly scaled up their data infrastructure this year to support artificial intelligence development. Industry projections suggest this trend will continue, with McKinsey & Company estimating nearly $7 trillion in global data center - related investments by 2030.
Producers of memory chips have begun shifting capacity toward data center needs, which rely on different types of memory than smartphones and personal computers. This shift has reduced the available supply for consumer electronics, according to market analysts. Micron recently announced it would exit the consumer memory segment, citing increased demand from AI-driven data center growth. Samsung has also reported strong demand for data center memory and expects supply constraints in mobile and PC components to deepen.
TrendForce estimates that rising memory prices have raised smartphone production costs by 8% to 10% in 2025. Although higher manufacturing costs do not always immediately translate into higher retail prices, analysts note that lower-priced Android models could be most affected due to narrow profit margins. Some companies may also delay product releases to focus on higher-end devices that can better absorb cost increases.
The International Data Corporation forecasts that the average selling price of smartphones may reach $465 in 2026, up from $457 in 2025, with the global market expected to reach a record value of $578.9 billion.
Industry experts say memory prices could surge by 30% in the fourth quarter of 2025 and rise a further 20% early next year before stabilizing in late 2026 as supply chains adjust. However, analysts acknowledge that the speed of AI adoption has added unexpected pressure on semiconductor markets, creating temporary mismatches in supply and demand.
Earlier, Qazinform News Agency reported that Samsung Electronics unveiled its Galaxy Z TriFold, a dual-folding smartphone that expands into a 10-inch display.
