A memory crisis looms over smartphones in 2026! Cheap phones could become more expensive, learn how this will impact users.

Smartphone Price Hike: If you're planning to buy a new smartphone, the year 2026 could prove to be a bit challenging. A major memory chip crisis is expected to hit the smartphone market in the coming years, leading to a rise in phone prices. This impact could be particularly felt in markets like India, where the demand for budget smartphones is high.

Smartphone Sales Expected to Decline in the Global Market

According to research firm International Data Corporation (IDC), smartphone shipments worldwide are expected to see a sharp decline in 2026. According to the report, while approximately 1.26 billion smartphones were shipped in 2025, this number could drop to approximately 1.12 billion units in 2026. The biggest reason for this decline is said to be the rising prices of memory chips. As the cost of these chips increases, companies will be forced to increase the prices of phones.

Phones priced under $100 may disappear

Countries like India have a large market for affordable smartphones. However, experts believe that smartphones priced under $100 (approximately 8-9 thousand rupees) may disappear from the market in the near future. IDC estimates that the average price of a smartphone could increase by approximately 14 percent by 2026. This will directly impact customers who purchase a new phone within a budget. The affordable prices that have made smartphones accessible to all segments of society over the past decade may now be under pressure.

The prices of many smartphones have already increased

The impact of rising memory chip prices is now visible in the market. The prices of some popular smartphone models have already been increased in recent months. For example, the iQOO Z10 and Vivo T4 5G have seen a price increase of approximately ₹2,000. Similarly, the prices of different storage variants of the iQOO Z10x and Vivo T4x 5G have increased by ₹1,500 to ₹2,500.

Premium Smartphones Are Not Spared

Not just budget phones, but even high-end smartphones are not immune to this crisis. The recently launched Samsung Galaxy S26 series also saw a price increase. The base model in this series was priced approximately ₹6,000 higher, while the Samsung Galaxy S26 Ultra saw a price increase of approximately ₹10,000.

Memory Supply Decreasing Due to Rising Demand for AI

A major reason for the shortage of memory chips is the rapidly advancing artificial intelligence (AI) technology worldwide. Tech companies like Meta, Google, and Microsoft are purchasing memory chips extensively for AI data centers and computing infrastructure. This is reducing the availability of chips for smartphone and PC manufacturers, forcing them to purchase them at higher prices.

What could change for Indian consumers?

Changing circumstances indicate that the smartphone market could undergo significant changes in the future. Indian consumers may experience fewer options for ultra-budget phones, higher average prices, and longer upgrade times. This means that purchasing affordable smartphones may not be as easy as before in the coming years.