Consumers bracing for sticker shock on their next smartphone purchase should prepare for rising costs in 2026, as a global memory chip shortage-fueled by surging demand from the artificial intelligence sector-is expected too drive up handset prices. New reports indicate the price hikes, potentially reaching up to $110 per device, will disproportionately impact mid-range and budget models due to escalating DRAM costs projected to climb as much as 170%. The situation is prompting major manufacturers to re-evaluate production strategies, with Samsung Electronics Indonesia already assessing its options while vowing to maintain value for consumers.
Jakarta –
Global smartphone prices are increasingly expected to rise in 2026 as a memory chip shortage, particularly of RAM, is exacerbated by surging demand from the artificial intelligence (AI) industry. This trend could add as much as $110 to the cost of handsets, especially in the mid-range and budget segments.
Reports from international research firms like International Data Corporation (IDC) and Counterpoint Research indicate that the global memory crisis could push smartphone prices up by as much as $70, beginning in the first quarter of 2026. This increase is driven by projected DRAM price hikes of 70-80%, potentially reaching as high as 170% under certain conditions.
The situation stems from major memory manufacturers, including Samsung, SK Hynix, and Micron, shifting production capacity towards the data center AI segment, which offers significantly higher profit margins. Strong demand from tech giants like Google, Meta, and Nvidia for GPUs and High Bandwidth Memory (HBM) is further limiting the supply of memory for consumer devices.
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Samsung’s Response
Samsung Electronics Indonesia acknowledges that rising component costs are a serious concern heading into 2026. Ilham Indrawan, MX Product Marketing at Samsung Electronics Indonesia, shared this assessment.
“We are still monitoring the situation next year, especially regarding the prices of peripherals, memory, chipsets, RAM, and ROM. Rest assured, our focus will be on delivering the best value to consumers,” Indrawan stated in Jakarta.
He emphasized that Samsung understands the cost pressures resulting from higher component prices, but the company will not hastily make decisions regarding price adjustments in the market.
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Ilham Indrawan, MX Product Marketing Senior Manager Samsung Electronics Indonesia Photo: Virgina Maulita Putri/detikINET
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Indrawan noted that Samsung is currently developing various strategies to address 2026. However, the company’s primary commitment is to maintain product value across all lines, from entry-level to flagship devices.
“Are there specific strategies planned for next year to raise prices or take a different approach? We are still evaluating everything. But our commitment is to deliver the best possible products, from the A-series like the A07 to the Z Fold7 and S25-series,” he affirmed.
Rather than immediately increasing prices, Samsung is working to absorb some of the cost increases through internal efficiencies, supply chain optimization, and product design innovation. This strategy aims to ensure consumers continue to receive the best possible experience without facing significant price increases.
Price Pressure and Market Outlook
The supply-side pressures are expected to have a broad impact on the global smartphone industry. IDC forecasts a 2.1% decline in global smartphone shipments in 2026, while the Average Selling Price (ASP) is projected to increase by approximately 6.9% year-over-year.
The Bill of Materials (BOM) cost for mid-range to premium phones could rise by as much as 15%. This is prompting manufacturers to make various adjustments, including reducing RAM capacity in entry-level models—potentially reverting to 4-6 GB—and increasing prices for flagship devices.
Some analysts predict that the next generation of flagship phones, including the Galaxy S series, will also be affected. Responding to news of potential price increases, Indrawan reiterated that the company is monitoring the situation and remains focused on the value it provides to consumers.
“Rest assured, our focus is on delivering the best value to consumers. And whether there are specific strategies planned for next year, such as raising prices or taking a different approach, we are still evaluating everything,” Indrawan concluded.
(afr/afr)
