Global smartphone prices have surged this year, with existing models rising by 15% and new releases by 25%. This trend is driven by a global shortage of memory chips, as manufacturers prioritize supply for AI data centers over consumer electronics.
Major memory chip producers Samsung Electronics, SK Hynix, and Micron Technology, which control over 90% of the market, have shifted their output toward AI infrastructure. This scarcity has forced smartphone makers to prioritize premium, high-margin devices over entry-level projects.
Chinese manufacturers, responsible for approximately 60% of global shipments, are scaling back budget offerings. In 2025, over 25% of global shipments cost under $150, but this segment is shrinking as companies pivot toward devices priced between $250 and $300.
Regional impacts vary, with prices in India rising by 21%, Asia-Pacific by 19%, and the Middle East and Africa by 18%. In the U.S., the increase is 5%. Shipments of smartphones priced under $100 dropped by nearly 60% in the second quarter of 2026.
The GSMA warns that rising costs threaten digital inclusion, as entry-level devices already consume up to 76% of monthly income for the poorest populations in sub-Saharan Africa. Experts do not expect costs to return to pre-2025 levels soon.
