Consumers planning to buy a new smartphone in 2026 may face significantly higher prices, as rising component costs are expected to push device prices upward next year. According to a new report by market research firm Counterpoint, sharp increases in RAM prices are already putting pressure on smartphone manufacturers and could reshape the global smartphone market.
Counterpoint has revised its outlook for 2026 smartphone sales, now forecasting a 2.1 percent market contraction instead of the previously expected growth. The change is largely attributed to rising memory costs, with RAM prices increasing between 8 percent and 25 percent by December 2025 compared to the start of the year. The firm warned that prices could climb a further 40 percent during the second quarter of 2026.
As a result, smartphone manufacturers are expected to reduce production volumes, particularly affecting smaller brands that lack the pricing power of major players such as Apple and other global leaders. Industry experts note that manufacturers have already begun responding to higher costs by scaling back features in some devices.
These adjustments include reduced camera module quality, downgraded displays, and cuts to audio and memory components in select models. Analysts estimate that average smartphone prices could rise by up to 7 percent in 2026, although the impact may be less noticeable for buyers of premium flagship devices.
The report suggests that cost pressures across the supply chain will continue to influence design choices and pricing strategies throughout the coming year, potentially making 2026 a challenging period for budget-conscious smartphone buyers.
