tech
The AI-fueled chip shortage could raise smartphone prices
The average selling price of smartphones in 2026 is expected to rise 6.9%, Counterpoint Research said.
TL;DR
- AI demand is causing memory chip shortages, impacting the semiconductor supply chain.
- Smartphone shipments are predicted to decrease by 2.1% in 2026, reversing previous growth forecasts.
- The average selling price of smartphones is expected to rise by 6.9% in 2026 due to increased component costs.
- DRAM, a key component for AI data centers, is also crucial for smartphones, and its prices have surged.
- Material costs for low-end smartphones have increased by 20-30%, and 10-15% for mid-to-high-end models.
- Memory prices may increase another 40% through Q2 2026, further raising Bill of Materials costs.
- Apple and Samsung are best positioned to handle the market changes, while Chinese manufacturers may struggle.
- Companies might downgrade other components or incentivize consumers to buy higher-priced devices.