AI chip shortage pushes smartphone prices up across global markets

A shortage of memory chips driven by strong demand from AI data centers has pushed mobile DRAM and NAND prices higher, and smartphone prices have risen about 10–25% in several markets.

Smartphone prices are rising in many markets as a shortage of memory chips tightens supply. The shortage is driven largely by growing demand from AI data centers that are using chips once made for phones. Memory now accounts for more than 20% of a phone's build cost, up from about 10–15% previously. Manufacturers are facing higher production costs and some increases are being passed to buyers. Reported details: - Mobile DRAM prices have risen more than 70% since early 2025, and NAND flash prices have nearly doubled, according to Omdia. - Smartphone prices have risen roughly 10–25% in several global markets, with lower-priced devices hit hardest because memory makes up a larger share of their cost. - Research firm Counterpoint expects global smartphone shipments to decline about 2.1% in 2026, reversing earlier forecasts of stable growth. - The article mentions that major brands, including Samsung Electronics, Apple, and several Chinese manufacturers, are expected to adjust pricing on upcoming models. - Analysts cited in the article do not expect quick relief because AI data center spending remains strong and memory makers are focusing on higher-margin server products. Summary: The shortage is raising costs across the smartphone supply chain and contributing to higher consumer prices and an anticipated modest decline in shipments. Major manufacturers are reported to be preparing price changes for upcoming models, and analysts generally do not expect quick relief as AI-related memory demand remains strong.