Anticipated Price Hikes for Phones and Computers in 2026

Key Insights by IDC

Planning to upgrade your smartphone or computer soon? Prepare to spend more money to acquire that latest tech.

A notable scarcity of DRAM and NAND chips, crucial for PCs and smartphones, is causing ripples across the tech industry. This shortage is pushing up the costs of these essential components, prompting manufacturers of PCs and mobile devices to transfer these increased costs to consumers by hiking prices.

Underlying Reasons for Component Scarcity

Artificial intelligence is partly to blame. Companies are procuring large quantities of memory for AI data centers and devices, with these systems necessitating significantly more memory than standard personal computers and gadgets.

As a result, fewer memory chips remain for consumer electronics, leading to a pinch in supply and elevated prices. Unlike typical cyclical shortages, this shortage might not be temporary.

IDC refers to this as a 'potentially enduring, strategic shift in global silicon wafer use,' highlighting an intense demand for high-capacity memory from giants like Microsoft, Google, Meta, and Amazon. Consequently, top memory producers like Samsung Electronics, SK Hynix, and Micron Technology are rebranding their investments towards profitable enterprise chips.

Impacts on the Smartphone Sector

IDC suggests sustained pressure on the smartphone market this year, particularly affecting Android manufacturers who aim to incorporate standout features into cost-effective phones. Memory, while often considered just another component, plays a decisive role in phone pricing.

"Memory costs constitute a significant portion of a phone's price," explain IDC analysts. "In mid-range models, memory costs can make up 15-20% of the total, whereas, for high-end models, it's around 10-15%. Given the rising memory costs, OEMs may need to either increase prices significantly or pare down specifications."

Resiliency of Apple and Samsung

Fortunately, those planning to buy an iPhone or Samsung device might skate past the price increases linked to memory shortages. These premium brands are shielded from such challenges. Apple and Samsung ensure sufficient memory reserves through strategic financial reserves and long-term contracts with suppliers.

The consequence is that new flagship models from these leaders probably won't see RAM upgrades in 2026. iPhones and Samsung's premium Galaxy lines may stick with 12GB of memory instead of hitting the 16GB mark next year.

Effects on the PC Market

Prominent PC manufacturers, including Lenovo, Dell, HP, Acer, and ASUS, have predicted price increments of about 15-20% owing to memory shortages in the latter part of 2026.

Who Bears the Brunt?

Organizations with substantial inventories and strong supplier ties are likely better equipped to handle these challenges. In contrast, smaller and local PC makers, including DIY system vendors popular with gaming and tech circles, will be most affected.

IDC foresees average PC prices climbing by 4% to 6% in a moderately optimistic scenario and by 6% to 8% if things are worse.

"As the landscape adapts, the smartphone and PC industries brace themselves for soaring costs, modifying product plans, and diminished growth rates," IDC elaborated. "Both consumers and businesses are witnessing the end of an era of low-cost, plentiful memory and storage, at least for the near future. 2026 appears to usher in costlier tech driven by supply limits rather than heightened demand."